inefficient credit booms this paper studies the welfare properties of competitive equilibria in an economy with financial frictions hit by aggregate shocks in particular it shows that competitive financial contracts can result in excessive borrowing ex ante and excessive volatility ex post even though from a first best perspective the equilibrium always displays under borrowing from a second best point of view excessive borrowing can arise the inefficiency is due to the combination of limited commitment in financial contracts and the fact that asset prices are determined in a spot market this generates a pecuniary externality that is not internalized in private contracts the model provides a framework to evaluate preventive policies which can be used during a credit boom to reduce the expected costs of a financial crisis copyright 2008 wiley blackwell

the crowding hypothesis and comparable worth although women s pay and occupational distribution have improved during the past few years it is still true that women earn considerably less than men and that their occupational distribution is substantially different because progress has been slow toward equality in the labor market some have called for a comparable worth policy proponents of this approach argue that occupational segregation contributes to the earnings disparity between women and men one theoretical justification for this position is the crowding hypothesis this paper first explains this theory and presents a method used to test its principal hypothesis it then describes an extension of this design for estimating the phenomenon that comparable worth policies address empirical studies conducted in this area are viewed and new findings are presented finally limitations of this analysis are discussed i introduction

the effect of cash transfers to schools on voluntary contributions abstract school based management programs aim to improve education outcomes by involving parents in allocation decisions about external funds transferred to the school this paper explores the effects of two school based management programs on parental investment in schools via voluntary contributions one program provides both a cash grant and a matching scheme for privately raised funds difference in differences estimation shows that parents in richer schools increased voluntary contributions by 28 while parents in poorer schools decreased voluntary contributions by 11 this implies that a matching scheme results in higher inequality in resources available to schools the second program provides only a cash grant to poor schools based on a randomized control estimation shows that parents use 83 of the grant to substitute for voluntary contributions a cash grant alone for poor schools results in an increase in resources available to the school in less than the cash grant transfer

the gender earnings differential in the russian transition economy using data from the russia longitudinal monitoring survey rlms the first nationally representative household survey in the russian federation the author examines the gender earnings differentia

remaking macroeconomic policy after the global financial crisis a balance sheet approach this paper describes the origins of the global financial crisis and how the prevailing new keynesian macroeconomic orthodoxy failed to anticipate its severity this failure we argue stemmed from an incomplete understanding of the pivotal role of financial institutions in the amplification of the crisis and its transmission to the wider economy low global interest rates and a consequent search for yield in the pre crisis period encouraged financial institutions to build highly leveraged balance sheets which in turn generated extremely large asset price movements when a small event the downturn in the us sub prime mortgage market triggered the crisis the paper then briefly describes the element of the broadly successful and coordinated macroeconomic policy response to the crisis before turning to the medium term challenges facing policymakers in sustaining global recovery at the national level we focus on the resolution of fiscal imbalances which contributed in part to the crisis and which then worsened because of the policy actions which have been taken to deal with it at the international level we emphasise the need to rectifying the imbalances between savings and investment in many significant countries this will require greater coordination of macroeconomic policy across the world s major economies it will also involve strengthening the role and the governance of the international monetary fund

investment in human capital and gender wage differences evidence from the nlsy this paper uses data from the national longitudinal survey of youth nlsy to investigate gender differences in returns to various forms of human capital since the nlsy includes relatively detailed information regarding on and off the job training we place special emphasis on measuring gender differences in the incidence of and returns to formal post school training also considered is the role of nonhuman capital factors such as industry and occupation in explaining the wage gap it is found that about 60 of the gender wage gap in the sample is explained by mean differences in individual characteristics and market circumstances this suggests a smaller role for discrimination in explaining the wage gap than previous research has found the research indicates that training does not affect the gender wage gap also it is found that there is no statistically significant difference in the rate of return to other measures of human capital for women versus men our research suggests that the largest factor

the use of quantile regressions in estimating gender wage differentials a case study of the philippines quantile regressions are used to analyse the size components and nature of the gender earnings differentials as well as the returns to education by gender in the philippines over the entire conditional distribution of earnings using data from the 1999 apis survey this approach allows more focused conclusions about the nature of gender earnings differentials incorporating the quantile regression approach to the oaxaca blinder decomposition allows the localization of gender discrimination to particular quantiles of the earnings distribution and permits more targeted policy intervention

gender differences in training capital and wages this paper constructs an equilibrium job matching model where workers differ in their attachment to the labor force the model predicts that workers with weaker attachment to the labor market will receive lower starting wages and lower post training wages and will be placed in jobs that offer less training and use less capital the implications of the model for gender differences in pay and job assignment are tested with the eopp data set ourfindings suggest that while training intensity during the first three months of employment is similar in positions filled by males and females females are employed in positions that have a shorter duration of on the job training and that use less capital these differences in on the job training and capital in positions filled by men and women as well as a lower market value for women s prior labor market experience account for a substantial part of the gap in wages between males and females

boom bust cycles leveraging complex securities and asset prices abstract recent history suggests that many boom bust cycles are naturally driven by linkages between the credit market and asset prices additionally new structured securities have been developed e g mbs cdos and cds which have acted as instruments of risk transfer we show that there is a certain non robustness in the pricing of these instruments and we create a model in which both their role in the recent financial market meltdown and in which the mechanism by which they exacerbate leverage cycles is explicit we first discuss the extent to which complex securities can amplify boom bust cycles then we propose a model in which distinct financial market boom bust cycles emerge naturally we demonstrate the interaction of leveraging and asset pricing in a dynamical model and spell out some implications for monetary policy

estimating wage discrimination in the labor market if labor supply curves are not perfectly inelastic wage discrimination induces some minority workers to leave the labor force studies of discrimination that focus only on wage differentials overlook these disincentive effects on minority employment

gender difference in promotions new evidence from the internal labor market in china gender differences in the labor market have attracted significant attention from economists who focus on gender differences not only in wages but also in promotions however the research on gende

intertemporal market effect on gender earnings differentials lawyers in canada 1970 80 the conventional methodology for decomposition of cross sectional earnings differentials is extended to include a market effect on intertemporal changes in earnings and to analyse the changes in gender differentials over time the integrated cross sectional and intertemporal methodology is illustrated by a decomposition of the change in the earnings differential that occurred during the 1970s between male and female lawyers in canada an unprecedented rate of growth in the supply of lawyers during the 1970s in canada was associated with changes in the gender earnings differential in the legal profession this rapid supply growth had an almost negligible net impact on female earnings but a negative impact of 15 on the male earnings this explains the narrowing of the earnings differential by almost 30 over the decade although three fifths of the gender differential in 1970 and half of the differential in 1980 were attributable to the differences in the characteristics of the two groups these chang

starting even job mobility and the wage gap between young single males and females standard econometric analysis of male female earnings differentials ignores job mobility despite its vital role in theories of discrimination and its demonstrated importance in explaining the earnings of young men this paper develops a model of male and female earnings and job mobility and estimates it for young single men and women in canada using the 1981 survey of work history the results corrected for sample selection bias arising from job mobility suggest that male and female earnings determination differs considerably by job mobility status returns to mobility are much greater for males than for females the results also show significantly different mobility behaviour for men and women but if anything females are more mobile than males faced with the same earnings opportunities thus differential job mobility behaviour does not appear to account for any portion of the male female earnings gap

discrimination empirical evidence from the united states the study of discrimination received a major impetus in the 1960 s when increasing social attention focused upon race and gender differentials in market outcomes gary becker s the economics of discrimination 1957 strongly influenced empirical research by providing a definition of wage discrimination and suggesting a specific way in which it might operate during the following years new theories were developed and refined in an attempt to explain why there appears to be continued discrimination in spite of market forces presumably operating against it similarly a large amount of empirical work has been done to determine whether and how much discrimination actually exists and to a lesser extent to test the implications of the various theories even so the hope expressed by becker in the preface of the second edition 1971 that our understanding of discrimination would increase so rapidly that the materials in his book would become obsolete before another decade began has clearly not been fulfilled here we review what has been learned in the intervening years and suggest some fruitful directions for future research 1 the focus of this paper like that of most of the empirical research in this area is on determining the extent of discrimination rather than on testing alternative models of discrimination

an equilibrium search matching model of discrimination abstract a model in which firms have incomplete information about workers at the hiring stage is shown to entail discrimination as the unique stable equilibrium outcome even if no agents have a taste for discrimination and groups are ex ante identical groups which are discriminated against e g blacks women earn lower wages and endure longer unemployment spells

randomized evaluations of educational programs in developing countries some lessons this paper reviews recent randomized evaluations of educational programs in developing countries including programs to increase school participation to provide educational inputs and to reform education it then extracts some lessons for education policy and for the practice and political economy of randomized evaluations

the trend in the male female wage gap in the united states despite the rise in the feminist movement the enactment of equal opportunity legislation and the rapid increase in women s labor force participation a substantial sex differential in wages has persisted in the united states for at least 4 decades measured by hourly earnings of year round workers this wage gap was 31 in 1955 widened to a 35 37 range by the 1960s and early 1970s and then narrowed to 33 by 1982 this paper examines the extent to which changes in the characteristics of men and women in the labor force and other factors can account for the observed pattern the main finding is that increases in women s labor force participation were initially associated with a declining skill level of employed women relative to employed men where skill is measured by years of schooling and job tenure more recently the work experience of employed women has been increasing which helps account for the recent narrowing trend in the wage gap during the 1970s the wage gap probably woul have narrowed m

a meta analysis of the international gender wage gap abstract since the early 1970s a number of authors have calculated gender wage differentials between women and men of equal productivity this meta study provides a new quantitative review of this vast amount of empirical literature on gender wage differentials as it concerns not only differences in methodology data and time periods but also different countries we place particular emphasis on a proper consideration of the quality of the underlying study which is done by a weighting with quality indicators the results show that data restrictions i e the limitation of the analysis to new entrants never marrieds or one narrow occupation only have the biggest impact on the resulting gender wage gap moreover we are able to show what effect a misspecification of the underlying wage equation like the frequent use of potential experience has on the calculated gender wage gap over time raw wage differentials worldwide have fallen substantially however most of this decrease is due to better labor market endowments of females

the sexual orientation wage gap the role of occupational sorting and human capital using data from the 2000 u s census the authors explore two alternative explanations for the sexual orientation wage gap occupational sorting and human capital differences they find that lesbian women earned more than heterosexual women irrespective of marital status while gay men earned less than their married heterosexual counterparts but more than their cohabitating heterosexual counterparts results of a oaxaca blinder decomposition indicate that the relative wage advantages observed for some groups of lesbians and gay men were mainly owing to greater levels of human capital accumulation particularly education while occupational sorting had little or no influence the relative wage penalties that were observed in other cases however cannot be attributed either to differences in occupational sorting or to human capital an analysis employing a dinardo fortin and lemieux decomposition which allows for variation in the wage gap at different points along the wage distribution broadly confir

the gender pay gap fringe benefits and occupational crowding using data from the 1991 national longitudinal survey of youth the authors estimate earnings equations for each of seven occupational categories and the aggregate sample when fringe benefits are excluded from the compensation measure a gender coefficient is statistically significant that is women are found to have received significantly lower compensation than men within six of the seven occupational categories the exception being the most female dominated category when an index of compensation that includes fringe benefits is used however a gender coefficient is significant in only one category which contains relatively heterogeneous jobs gender specific regressions are used to estimate what part of the earnings gap between men and women is due to differences in traits the results indicate that occupational assignment is the primary determinant of the pay gap a result that is consistent with a crowding explanation of that gap

rethinking macroeconomics what failed and how to repair it the standard macroeconomic models have failed by all the most important tests of scientific theory they did not predict that the financial crisis would happen and when it did they understated its effects monetary authorities allowed bubbles to grow and focused on keeping inflation low partly because the standard models suggested that low inflation was necessary and almost sufficient for efficiency and growth after the crisis broke policymakers relying on the models floundered notwithstanding the diversity of macroeconomics the sum of these failures points to the need for a fundamental re examination of the models and a reassertion of the lessons of modern general equilibrium theory that were seemingly forgotten in the years leading up to the crisis this paper first describes the failures of the standard models in broad terms and then develops the economics of deep downturns and shows that such downturns are endogenous further the paper argues that there have been systemic changes to the structure of the economy that made the economy more vulnerable to crisis contrary to what the standard models argued finally the paper contrasts the policy implications of our framework with those of the standard models

wage discrimination in the reemployment process this paper examines wage discrimination by gender in the reemployment market by looking at the experiences of unemployed individuals and decomposing their wage gap upon reemployment the neumark decomposition technique is extended to incorporate selectivity and counter factual estimates are used to explain the development of the wage gap over time whereas total discrimination upon reemployment is declining over time the part directly attributable to hiring is increasing policy makers should consider that employers constrained by existing legislation that does not address hiring issues directly are switching over to discriminatory hiring practices that are becoming relatively easier to adopt less likely to be detected and harder to prove in a court of law

recent two stage sample selection procedures with an application to the gender wage gap recently developed two stage estimation methods of sample selection models are used in the context of data from the 1989 labor market activity survey to examine labor supply decisions and wage outcomes for employed men and women recent hypothesis test procedures are used to test for no sample selection and to test for a parametric against a semiparametric selection correction procedure we conclude that selection is indeed an issue for the sample at hand and that the semiparametric specification is appropriate we also present the standard decomposition of the gender wage gap into its explained and unexplained portions

trends in earnings differentials by gender 1971 1981 this paper clarifies trends in relative earnings by sex over the decade 1971 1981 and decomposes these trends to determine which factors contributed to a decline and which to an increase our analyses are based upon data from the annual demographic files of the current population survey for 1972 and 1982 this study is unique in that it estimates earnings functions in each year which are corrected for selectivity bias it is found that such a correction markedly raises the progress of white women relative to men among blacks the impact of the selectivity bias correction was to substantially lower the relative earnings increase of women however the coefficients on the selectivity variable were not significant the findings suggest declining sex role specialization and discrimination as conventionally measured over the decade on the other hand contrary to expectations the total effect of variables reflecting the sex composition of the individuals occupation worked to widen the sex differential over the period the sex differential was also adversely affected by a decline in the relative return to education especially for whites authors modified

human capital discrimination and the gender wage gap in bangladesh summary this paper investigates changes in the gender wage gap in bangladesh over the period 1999 2009 the gap in average wages between men and women decreased by 31 over this period this paper shows that a key driver of this change was an improvement in female educational qualifications it also demonstrates that the gender wage gap across the wage distribution narrowed much more at the lower end of the wage distribution than at the upper end it attributes this mainly to a decline in discrimination against women implications for policies aimed at more equal access to education and enforcement of equal pay legislation in bangladesh are also identified

capital flows consumption booms and asset bubbles a behavioural alternative to the savings glut hypothesis bernanke 2005 hypothesized that a global savings glut was causing large trade imbalances however we show that the global savings rates did not show a robust upward trend during the relevant period moreover if there had been a global savings glut there should have been a large investment boom in the countries that imported capital instead those countries experienced consumption booms national asset bubbles explain the international imbalances the bubbles raised consumption resulting in large trade deficits in a sample of 18 oecd countries plus china movements in home prices alone explain half of the variation in trade deficits

economic growth and the demand for education is there a wealth effect abstract human capital investment in developing countries is thought to be significantly constrained by household resources this paper studies the relationship between household resources and the demand for education using recent household survey data from vietnam the data cover a period 1993 1998 of exceptional income growth in vietnam during which secondary school enrollment rose substantially using consumption expenditures to measure household wealth we find a positive and significant relationship between changes in wealth and changes in the demand for education this wealth effect persists even after controlling for locality specific factors such as changes in education returns and the supply and quality of schools and for the opportunity costs of schooling

the human capital approach to black white earnings inequality some unsettled questions the persistence of earnings differences between blacks and whites in the united states has been a topic that has received a substantial amount of attention in both theoretical and empirical research in economics the differential in earnings typically is tied to racial differences in human capital accumulation this paper advances a systematic critique of the human capital approach to black white inequality inadequacies are identified in human capital theory as a general theory of inequality as well as a specific theory of racial inequality the critique suggests that a serious analysis of the black white earnings gap will require an entirely new approach to the study of racial income inequality

a sociological perspective on gender and career outcomes both economists and sociologists have documented the association between gender and career outcomes men are more likely than women to participate in the labor force and men average more hours of paid labor per week and more weeks per year women and men tend to hold different occupations and to work in different industries firms and jobs furthermore men outearn women hold more complex jobs and are more likely to supervise workers of the other sex and to dominate the top positions in their organization the challenge for both disciplines lies not in showing that gender is linked to employment outcomes but in explaining the associations economists have sought explanations in the characteristics and preferences of individual workers or employers some have attributed the associations between workers sex and their career outcomes to sex differences in training and experience career commitment or competing demands on time and energy others focus on employers preferences for workers of one sex over the other taste discrimination or on employers beliefs that workers of one sex or the other are more costly or less profitable to employ statistical discrimination the sociological approach differs from that of economists in recognizing sex segregation as a causal mechanism that gives rise to other differences between women s and men s careers this emphasis on segregation reflects sociologists interest in the ramifications of societal level systems of differentiation and stratification it stems also from the discipline s concern with the impact of people s location in social structures on a variety of life outcomes by concentrating men and women in different jobs segregation exposes them to more or less similar employment

gender earnings differentials in total pay base pay and contingent pay copyright by cornell university this is the publisher s version and is also electronically available from http ilr sagepub com content 47 4 634 abstract

wage determination of registered nurses in proprietary and nonprofit nursing homes this study explores why registered nurses employed in nonprofit nursing homes earn higher wages than those employed in proprietary facilities previous studies have explained this finding in a property rights context where higher wages were posited to result from the weaker incentives for cost minimization accompanying nonprofit status this paper tests an alternative explanation of sectoral wage differences which is predicated on the reason for the coexistence offor profit and nonprofit firms in a given industry informational constraints concerning the quality of care are posited to cause the long term health care market to fail to provide care at the upper levels of a quality of care continuum nonprofits are viewed as a response to this form of market failure acting to fulfill customers demand for higher quality and higher cost long term care with attendant demand for higher quality nurses than in for profit homes both the observed sectoral pattern in selectivity and wage decompositions based on selectivity corrected wage regressions call into question the property right explanation yet are consistent with an asymmetric information explanation

school decentralization helping the good get better but leaving the poor behind abstract the decentralization of public services is a major feature of institutional innovation the main argument in support of decentralization is that it brings decisions closer to the people thereby alleviating information asymmetries and improving accountability however decentralization can also degrade service provision in poor communities that lack the ability to voice and defend their preferences in this paper we analyze the average and distributional effects of school decentralization on educational quality in argentina we find that decentralization had an overall positive impact on student test scores the decentralization gains however did not reach the poor thus although bringing decisions closer to the people may help the good get better the already disadvantaged may not receive these benefits

the importance of cost of living and education in estimates of the conditional wage gap between black and white women while evidence about discrimination in u s labor markets typically implies preferential treatment for whites recent studies document a substantial wage premium for black women for example fryer 2011 although differential selection of black and white women into the labor market has been a suggested explanation we demonstrate that accounting for selection does not eliminate the estimated premium we then incorporate two additional omitted variables recently documented in the literature 1 local cost of living and 2 years of education attained conditional on afqt score after controlling for these variables we find no evidence of a wage premium for black women

career duration in the nhl pushing and pulling on europeans abstractusing a panel of national hockey league players from 2000 through 2013 we analyse the determinants of career length in the league in our analysis we include both performance variables and nationality of origin to determine their importance in determining career length we find that european born players have shorter careers than north american born players holding performance constant and russian born players have even shorter careers than other europeans we further find that russian born players have even shorter careers than other players after the 2005 lockout these shorter careers are consistent with both exit discrimination against european and russian players who are pushed out of the league as well as voluntary exit by european and russian players who are pulled out of the league due to opportunities in their home countries

a multinomial logit nondiscriminatory approach to estimating racial wage and occupational discrimination this paper combines a technique to measure nondiscriminatory wage structures with a multinomial logit model to estimate both occupational racial discrimination and within occupation racial wage underpayment and overpayment using a recent south african october household survey it is found that racial discrimination against blacks and in favour of whites still persists in the south african labour market implying the persistence of white employer nepotism and or white employee discrimination

gender wages and discrimination in the ussr a study of a russian industrial town male and female wage equations are estimated from survey data from the city of taganrog in 1989 the first such estimates on data collected in the ussr reductions in working hours for low paid female professionals resulting in relatively high hourly rates encouraged women to acquire higher education while maintaining an unequal and conservative gender division of labour decomposition of the wage gap shows strong indications of discrimination a wage function estimated from the pooled sample as in oaxaca and ransom 1994 explains a larger share of the gender gap but does so because it disregards aspects of discrimination

joseph schumpeter lecture the great moderation the great panic and the great contraction this lecture examines the causes of the recent financial crisis and subsequent recession on the macroeconomic side the great moderation encouraged an overly optimistic assessment of risk combined with low interest rates reflecting both loose monetary policy and relatively high asian savings rates that encouraged a build up of excessive leverage in the banking system on the microeconomic side distorted incentives led to a concentration and mispricing of risk informational complexities associated with new financial assets and the interconnectedness of financial institutions then resulted in the closure of funding markets and a flight to safety when loan defaults rose unexpectedly the episode indicates the need to focus on agency and information problems between banks and their funders in addition to those between the banks and their borrowers it also suggests that the process of financial intermediation should play a more prominent role in macroeconomic models jel e32 e44 e52 e58 f32 g01 g21

market and institutional determinants of wage differentiation in russia using a range of official and survey data the author evaluates the relative success of two approaches competitive labor market theory and industrial relations theory institutional economics in explaining wage determination in russia following a review of the analysis of wage determination by an influential team of world bank economists the author shows that increased wage inequality in russia is dominated by inequality within occupational categories within local labor markets such inequality he suggests is primarily associated with inter firm differences in wage levels rather than barriers to labor mobility or differences in human capital such a pattern of differentiation entirely accords with the analyses of those institutional economists and industrial relations theorists who stress the role of the wage in regulating and motivating the labor force above its role in securing labor market equilibrium the paper concludes by outlining the institutional framework of wage determination that underli

reassessing the male female wage differential a fixed effects approach the vast literature on the subject of the male female wage differential has shown that despite dramatic structural and behavioral changes in the labor supply of women a sizeable wage differential exists 19 2 9 6 4 o neill 16 s92 finds that a sex differential of about 40 as measured by full time annual earnings has persisted in the u s for the last four decades but while few doubt the existence of the wage gap there is considerable controversy regarding the role of the factors explaining the gap the conventional approach of economists has been to estimate earnings as a function of various socio economic characteristics the observed wage gap is decomposed into a part explained by productivity related factors and an unexplained residual traditionally labelled as discrimination while it is possible that the unexplained variation in earnings is the result of discrimination it is also possibly the result of model misspecification 2 in this present paper we address the misspecification that could possibly arise from omitted variables endogeneity and sample selection while these issues have been considered in the context of women s labor supply functions they have largely been ignored in studies on the wage differential 12 13 we approach the problem of omitted variables by formulating a fixed effects model in this way productivity related factors that are difficult to measure or have unsuitable proxies are netted out from the earnings equation furthermore some of the variables that are used to explain wages are themselves the outcome of discrimination in particular the labor market experience of a woman is dependent on her wages earned here we address the endogeneity that such a cause and effect relationship may bring about a third difficulty arises because a typical sample of working women is a non random selection of the female labor force giving rise to the problem of sample selection bias heckman s 12 213 17 procedure is used to formulate a sample selection model of earnings the organization of this paper proceeds as follows section ii begins with the traditional model of earnings and then develops an extended model which consolidates the issues of omitted variables endogeneity and sample selection section iii contains the empirical results of the

is there an intrahousehold flypaper effect evidence from a school feeding programme are public transfers targeted toward children neutralised by the household as the theory of altruism implies or is there an intrahousehold flypaper effect whereby such transfers stick to the child this paper studies the impact of a school feeding programme on child caloric intake in the philippines using a quasi experimental methodology the empirical results confirm an intrahousehold flypaper effect indeed they indicate virtually no intrahousehold reallocation of calories in response to the feeding programme in poorer households however children s gains from the programme appear to be taxed more heavily

leverage and asset bubbles averting armageddon with chapter 11 an iconic model with high leverage and overvalued collateral assets is used to illustrate the amplification mechanism driving asset prices to overshoot equilibrium when an asset bubble bursts threatening widespread insolvency and what richard koo calls a balance sheet recession besides interest rates cuts asset purchases and capital restructuring are key to crisis resolution the usual bankruptcy procedures for doing this fail to internalise the price effects of asset fire sales to pay down debts however we discuss how official intervention in the form of super chapter 11 actions can help prevent asset price correction causing widespread economic disruption

will a shrink make you richer gender differences in the effects of psychotherapy on labour efficiency this paper provides a first theoretical and empirical analysis of the effects of psychotherapy on individual productivity we build a simple model in which a deterioration of mental health endogenously causes a decrease in productivity which is counterbalanced by psychotherapy we test our hypotheses on the british household panel survey data we find that individuals suffering from mental health problems benefit economically from consulting a psychotherapist moreover we find that the returns are higher for men than for women even though women are more likely to seek help

male female wage differentials in job ladders much of the male female wage differential exists because men and women are assigned to different jobs within narrow job categories there is no male female differential only a tortured taste theory of discrimination can reconcile these facts we argue that differential movement along job ladders entails comparative advantage so the ability standard for promotion is higher for women this implies that more able women will be passed over in favor of less able men women assumed to have the same ability distribution as men earn less the differential reflects females lower promotion probability not within job discrimination

on the decomposition of wage differentials the often used method for decomposing wage differentials into human capital and discrimination components is reformulated so that both t he disadvantage or cost discrimination it imposes on a black or minority wage earner and the advantage or benefit it bestows on a white or majority wage earner can be estimated copyright 1988 by mit press

financial deepening and economic growth the core of shapley shubik games and general equilibrium models with a venn diagram is applied for a theory on the role of real finance in economic growth among advanced economies then the dynamic computable general equilibrium dcge models for germany france the uk japan and the usa are constructed to assess the validity of the over financing hypothesis that has reappeared after the financial crisis of 2008 actual financial deepening ratios observed in the nonconsolidated balance sheet of the oecd exceeded by factors of 3 5 2 4 5 1 11 6 and 4 8 than the optimal financial deepening ratios implied by dcge models respectively in these countries because of excessive leveraging and bubbles up to 19 times of gdp which were responsible for this great recession containing such massive fluctuations for macroeconomic stability and growth in these economies are not possible in conventional fiscal and monetary policy models and require a dcge analysis like this along with adoption of separating equilibri

incorporating the causes of occupational differences in studies of racial wage differentials this study provides a basic framework for incorporating the causes of occupational differences into analyses of racial wage differentials separating the influences of personal characteristics occupational choice and hiring discrimination on occupational attainment provides measures of the contributions of each to the racial pay gap the paper also considers the potential for bias in the wage equation estimates arising from self selection into occupations there are two generalfindings first correcting for self selection increases the importance of occupational distribution in explaining racial wage differentials second a proper accounting of the causes of these occupational differences yields discrimination measures that are higher than those that arise when occupational dummy variables are included in the wage equations and all the difference in occupational distribution is treated as nondiscriminatory

collateral constraints and the amplification mechanism abstract kiyotaki and moore j polit economy 105 1997 211 have offered a theory for how common shocks to credit constrained firms are amplified through changes in collateral values and transmitted as fluctuations in output i clarify and extend their model by showing that their collateral amplification mechanism is not robust to the introduction of markets that allow these firms to hedge against common shocks a theory of incomplete hedging is proposed in which the supply of hedging available in the economy is constrained by the aggregate value of collateral i illustrate how the constraint reinstates amplification effects and discuss empirical implications of this new mechanism

asset bubbles leverage and lifeboats elements of the east asian crisis collapsing credit markets have been blamed for the depth and persistence of the great depression in the united states could similar mechanisms have played a role in ending the east asian economic miracle and in creating fragility in global financial markets after a brief account of the nature of the east asian crises of 1997 8 we use the framework of highly leveraged fully collaterised firms due to kiyotaki and moore 1997 to explore the impact of a credit crunch the paper emphasises the fragility of equilibrium and how rapidly boom can turn to bust

financial innovation macroeconomic stability and systemic crises we present a general equilibrium model of intermediation designed to capture some of the key features of the modernnancial system the model incorporatesnan cial constraints and state contingent contracts and contains a clearly dened pe cuniary externality associated with assetre sales during periods of stress if a sufciently severe shock occurs during a credit expansion this externality is capa ble of generating a systemicnancial crisis that may be self fullling our model suggests thatnancial innovation and greater macroeconomic stability may have madenancial crises in developed countries less likely than in the past but poten tially more severe

testing for racial discrimination in the labour market racial discrimination in selection for job interview was measured directly by the experimental technique of corresponding testing carefully matched pairs of written job applications were sent in response to advertised vacancies in victoria a state of australia one letter was from an applicant with an anglo celtic name and the other was from an applicant with a greek or vietnamese name statistically significant discrimination was found against both vietnamese named and greek named applicants there was no relationship between the incidence of discrimination and the competitive structure of the employer s product market copyright 1991 by oxford university press

securitisation and financial stability a widespread opinion before the credit crisis of 2007 8 was that securitisation enhances financial stability by dispersing credit risk after the credit crisis securitisation was blamed for allowing the hot potato of bad loans to be passed to unsuspecting investors both views miss the endogeneity of credit supply securitisation enables credit expansion through higher leverage of the financial system as a whole securitisation by itself may not enhance financial stability if the imperative to expand assets drives down lending standards the hot potato of bad loans sits in the financial system on the balance sheets of large banks rather than being sold on to final investors since the aim of financial intermediaries is to expand lending in order to utilise slack in balance sheet capacity

employment discrimination an organizational model empirical findings have indicated that gender based discrimination is manifested during the assignment of workers to organizational positions since the position occupied has a major effect on a wo

does drug use lower wages this study using microdata from the 1980 and 1984 waves of the national longitudinal survey of youth examines the effects of drug use on wages and employment contrary to most previous researcher