a simple estimator for simultaneous models with censored endogenous reggressors this paper presents a simple two step estimator for models with censored endogenous regressors and sample selection bias the approach unifies the literature on censored endogenous regressors and sample selection bias and provides extensions the procedure employs generalized residuals to adjust for the inconsistency caused by the endogeneity of the censored regressors the paper also provides two new tests of weak exogeneity an empirical example examining the trade off between fringe benefits and wages indicates that the estimation procedure works well a monte carlo experiment suggests that the proposed tests have good power properties copyright 1993 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

a theoretical and empirical analysis of family migration and household production reply of her household production as factors in the family s migration decisions 38 in this paper the research on family migration will be extended in three ways a formal model of household production and family migration will be developed and used to generate testable hypotheses about family migration variables which otherwise would not have a clear economic interpretation are incorporated into the model the model will then be estimated and some policy implications will be discussed one policy implication concerns the efficiency of the labor market labor market efficiency needs to be judged not only in terms of the efficiency of the job search of single individuals but also in terms of the efficiency of the joint job search of double income families this paper is organized into five sections first a comparative static household production model of locational choice is developed 2 next this model of locational choice is used to develop a theoretical model of family migration third the data and empirical model are discussed fourth the empirical results are reported and interpreted in terms of three different types of migration estimates of the impact of selected variables on the distance of the move are also considered the final section summarizes the general findings and offers some policy implications

mutual fund performance an analysis of quarterly portfolio holdings this article employs the 1975 84 quarterly holdings of a sample of mutual funds to construct an estimate of their gross returns this sample which is not subject to survivorship bias is used in conjunction with a sample that contains the actual net returns of the mutual funds in addition to allowing the authors to estimate the bias in measured performance that is due to the survival requirement and to estimate total transaction costs the sample is used to test for the existence of abnormal performance the tests indicate that the risk adjusted gross returns of some funds were significantly positive copyright 1989 by the university of chicago

gender differences in overeducation a test of the theory of differential overqualification there is little question that substantial labormarket differences exist between men and women among the most researched difference is the male female wage gap many different theories are used to explain why men earn more than women one possible reason is based on the limited geographic mobility of married women robert frank 1978 family mobility is a joint decision in which the needs of the husband and wife are balanced to maximize family welfare job motivated relocations are generally made to benefit the primary earner in the family this leads to a constrained job search for the secondary earner as he or she must search for a job in a limited geographic area since the husband is still the primary wage earner in many families the job search of the wife may suffer individuals who are tied to a certain area are labeled tied stayers while secondary earners who move for the benefit of the family are labeled tied movers jacob mincer 1978 the wages of a tied stayer or tied mover may not be substantially lower if the family lives in or moves to a large city if a large labor market has more vacancies the wife may locate a wage offer near the maximum she would find with a nationwide job search however being a tied stayer or tied mover can lower the wife s wage if the family lives in or moves to a small community a small labor market will reduce the likelihood of her finding a job that utilizes her skills as a result she may accept a job for which she is overqualified and thus earn a lower wage this hypothesized relationship between the likelihood of being overqualified and smsa size is termed differential overqualification frank 1978 and haim ofek and yesook merrill 1994 provide support for the theory of differential overqualification by finding that the malefemale wage gap is greater in smaller smsa s while the results are consistent with the existence of differential overqualification they may also result from other situations as well firms in small labor markets may use their monopsony power to keep wages down 2 local demand shocks are found to be a major source of wage variation both across and within local labor markets robert topel 1986 since large labor markets are generally more diversified a demand shock can have a substantial impact on immobile workers in small labor markets another reason for examining differential overqualification involves the assumption that there are more vacancies in large labor markets while there is little doubt that more vacancies exist in large labor markets there are also likely to be more people searching for jobs in large labor markets if the greater number of vacancies is offset by the larger number of searchers it is unclear whether women will be more likely to be overqualified in small labor markets instead of relying on wages to determine if differential overqualification exists we consider an explicit form of overqualification based on education

strategic price complexity in retail financial markets abstract there is mounting empirical evidence to suggest that the law of one price is violated in retail financial markets there is significant price dispersion even when products are homogeneous also despite the large number of firms in the market prices remain above marginal cost and may even rise as more firms enter in a non cooperative oligopoly pricing model i show that these anomalies arise when firms add complexity to their price structures complexity increases the market power of the firms because it prevents some consumers from becoming knowledgeable about prices in the market in the model as competition increases firms tend to add more complexity to their prices as a best response rather than make their disclosures more transparent because this may substantially decrease consumer surplus in these markets such practices have important welfare implications

interprovincial migration and local public goods the objective of this paper is to test whether fiscally induced migration occurs in canada that is whether interprovincial migration flows are influenced by government tax and expenditure policies in order to do so a multinominal logit model of migration is developed in which individuals choose to live in the province where their utility would be highest the model is estimated using aggregate data for the period 1962 81 the results indicate that migration is influenced by provincial government spending trough the magnitude and direction of the effect differs with the type of government spending the implication of these results is that intergovernmental transfer payments and provincial natural resource revenues also have the potential to influence migration flows in canada summary in fre excerpt

the effects of job relocation on spousal careers evidence from military change of station moves we investigate the impact of military job relocation on spousal earnings and employment by creating a unique longitudinal database that tracks over 900 000 military spouses over the period 2001 2012 based on data from two administrative sources military records on personnel and their dependents and social security earnings records this database allows us to estimate the effects of military change of station moves controlling for some key observable characteristics of the service member and household and controlling for individual spouse fixed effects we find that military moves cause a substantial decline in spousal earnings in the year of the move on the order of 2 100 or 14 of average spousal earnings moves also increase the likelihood that the spouse has no earnings for the year we find larger earnings reductions for moves that cross state lines and for older spouses male spouses and those with young children the career costs persist over time and spouses continue to experience significantly lower earnings 2 years after the move this persistence combined with the typical military member experiencing a change of station move every 2 or 3 years may substantially limit the ability of military spouses to accumulate human capital over time jel h56 r23 j45 j16 j64

sources procedures and microeconomic effects of innovation fabio arcangeli paul david frank engelman christopher freeman massimo moggi richard nelson luigi orsenigo nathan rosenberg michele salvati g n von tunzelman two anonymous referees and the participants at the meeting of the committee on distribution growth and technical progress of the italian national research council cnr rome november 16 1985 have helped with various redraftings a particularly grateful acknowledgment is for the insightful and patient help of moses abramovitz this work has been undertaken at the science policy research unit spru university of sussex as part of the research program of the designated research centre sponsored by the economic and social research council esrc earlier support to the research that led to this paper by the italian national research council cnr is also gratefully acknowledged the statistical research has been undertaken with the assistance of stephano brioschi ilaria fornari and giovannu prennushi

labor immobility and the formation of gender wage gaps in local markets family ties have an important effect on the wage gap between male and female workers because wives are often more geographically tied to their husband s location which may not be the best market for the wife s skills theory implies a testable inverse relationship between urban size reflecting labor market size and male female wage differentials our results indicate that the wage gap between married men and women narrows with urban size about 17 percent of the wage gap between married men and women can be accounted for by urban size or more fundamentally by geographic immobility due to the family tie constraint

public policies for local networks of innovators abstract a rich and heterogeneous literature has recently clarified the nature of agglomerations of small and medium sized companies industrial districts flexible manufacturing networks interacting in a territory and acting in the open market as efficient competitors against other forms of production organization such as the traditional vertically integrated firm their ability to adjust to uncertain external conditions depends on fthe common culture and diffuse knowledge of the area which is a sunk cost for those companies in a policy perspective the main question concerns the possibility of intervening in a specific context to stimulate the creation and growth of an agglomeration of companies i e to establish a clan of agents having a common interest in innovation technological knowledge will have to be provided as club good for the network there are three elements to be considered in designing such a policy 1 entry into admission and exit from exclusion the network 2 promotion of a positive selection process of innovators within the network 3 increasing the common knowledge and the specific learning characterizing the network the aim of public interventions undertaken in the various regions of europe but also in several experiments in the us can be seen as the constitution of collective agents or service centers sponsored by the local public authorities and enterpreneurial associations to manage collectively the cost of coordination of the entrepreneurial activities necessary for the formation and development of a local network of innovators the new industrial policy approach of the european community is explicitly oriented to supporting the local aggregation of new businesses through the promotion of integrated plans of local intervention

why are power couples increasingly concentrated in large metropolitan areas using the panel study of income dynamics psid we test costa and kahn s colocation hypothesis which predicts that power couples couples in which both spouses have college degrees are more likely to migrate to the largest cities than part power couples or power singles we find no support for this hypothesis instead regression analyses suggest that only the education of the husband and not the joint education profile of the couple affects the propensity to migrate to large metropolitan areas the observed location trends are better explained by higher rates of power couple formation in larger metropolitan areas

bargaining and distribution in marriage the standard economic model of the family is a common preference model that assumes that a family maximizes a single utility function and implies that family behavior is independent of which individuals receive income or control resources in recent years this model has been challenged by game theoretic models of marriage that do not impose pooling and are therefore consistent with empirical evidence that income controlled by husbands and wives does have different effects on family behavior in this paper the authors review a number of simple bargaining models and relevant empirical evidence and discuss their implications for distribution within marriage

regional sorting of human capital the choice of location among young adults in sweden berck p tano s and westerlund o regional sorting of human capital the choice of location among young adults in sweden regional studies migration rates are highest among young adults especially students and their location choices affect the regional distribution of human capital growth and local public sector budgets using swedish register data on young adults the choice of whether to enrol in education and the choice of location are estimated jointly the results indicate a systematic selection into investment in further education based on school grades and associated preferences for locations with higher per capita tax bases for students the estimates indicate lower preferences for locations with higher shares of older people the importance of family networks for the choice of location is confirmed

sin city why is the divorce rate higher in urban areas divorce rates are higher in cities based on danish register data this paper shows that of the marriages formed in the city those couples who remain in the city have a 23 higher divorce rate than those who move out in this paper we test whether this observation is due to sorting of more stable marriages into rural areas or if there exists a causal effect of living in urban areas on marriage instability our identification strategy supplements the timing of events approach with an instrumental variable our findings suggest that the effect of living in an urban area on the divorce risks drops substantially and loses statistical significance once we address sorting keywords divorce search mobility city keywords j12 j64

brokerage commission schedules it is generally optimal for risk sharing reasons to base a charge for information on the signal realization when this is not possible a charge based on the amount of trading a brokerage commission may be a good alternative the optimal brokerage commission schedule is derived for a risk neutral information seller faced with risk averse purchasers who may differ in their risk aversion revenues from the brokerage commission are compared with those from a fixed charge for information and the optimal mutual fund management fee the brokerage industry is a significant source of information for investors about prospective security returns one indication of this is that of the 11 817 members of the association for investment management and research who listed their occupations as investment management or research in 1991 21 percent worked for brokers and investment dealers another is that since the abolition of fixed commissions a distinction has arisen between full service brokers who provide investors with investment information and discount brokers who charge lower commissions and provide only transaction services 1 the information produced by broker research is typically provided free of charge to investors in the expectation that it will stimulate trade rewarding the brokerage house with commissions 2 this paper compares the sale of investment information in return for a brokerage commission with direct sale for a fixed payment and indirect sale through the provision of investment management services in return for a

a theoretical and empirical analysis of family migration and household production u s 1980 1985 migration studies have usually focussed on individual persons or workers there has however been some interest in family migration while single individuals in the labor market only have to worry about their own income families where both the husband and wife may be in the labor market need to be concerned with the income of both spouses hence double income families may be less likely to move than single income families jacob mincer 26 develops and explores this hypothesis to be called the tied mover hypothesis the tied mover hypothesis has recently been extended to include not only considerations of the wife s earnings but also considerations of her household production as factors in the family s migration decisions 38 in this paper the research on family migration will be extended in three ways a formal model of household production and family migration will be developed and used to generate testable hypotheses about family migration variables which otherwise would not have a clear economic interpretation are incorporated into the model the model will then be estimated and some policy implications will be discussed one policy implication concerns the efficiency of the labor market labor market efficiency needs to be judged not only in terms of the efficiency of the job search of single individuals but also in terms of the efficiency of the joint job search of double income families this paper is organized into five sections first a comparative static household production model of locational choice is developed 2 next this model of locational choice is used to develop a theoretical model of family migration third the data and empirical model are discussed fourth the empirical results are reported and interpreted in terms of three different types of migration estimates of the impact of selected variables on the distance of the move are also considered the final section summarizes the general findings and offers some policy implications

moving out to move up dual career migration and work family tradeoffs using data from a survey of new entrants to the junior phd job market in economics this paper shows that dual career location problems compromise the personal and professional lives of early career phds contrary to the common assumption that couples who do not live together break up we find that living apart is a viable solution to location problems in the first year after graduate school surprisingly phds facing moderate location problems are more likely than those facing severe location problems to make career sacrifices on behalf of their relationship phds facing severe location problems are more likely to live apart jel j12 j44 a11

a question of compromise case study evidence on the location and mobility strategies of dual career households green a e 1997 a question of compromise case study evidence on the location and mobility strategies of dual career households reg studies 31 641 657 drawing on in depth interviews with 30 dual career households this paper presents a framework for the study of and selected evidence on the key factors influencing the location and mobility strategies of a privileged and growing group of the population the ways in which such factors are traded off one against another in decision making and how individual sacrifices may be made for household benefits are outlined accessible semi rural areas emerge as one of the most preferred residential environments for dual career households with many couples prepared to commute long distances to work nearly always by car in order to live in such areas a further advantage of a location accessible to a motorway junction is that commuting potential for both partners is maximized while the need for residential migration is minimized green a e 1997

of tournaments and temptations an analysis of managerial incentives in the mutual fund industry we test the hypothesis that when their compensation is linked to relative performance managers of investment portfolios likely to end up as losers will manipulate fund risk differently than those managing portfolios likely to be winners an empirical investigation of the performance of 334 growth oriented mutual funds during 1976 to 1991 demonstrates that mid year losers tend to increase fund volatility in the latter part of an annual assessment period to a greater extent than mid year winners furthermore we show that this effect became stronger as industry growth and investor awareness of fund performance increased over time

power couples changes in the locational choice of the college educated 1940 1990 college educated couples are increasingly located in large metropolitan areas these areas were home to 32 percent of all college educated couples in 1940 39 percent in 1970 and 50 percent in 1990 we investigate whether this trend can be explained by increasing urbanization of the college educated or the growth of dual career households and the resulting severity of the colocation problem we argue that the latter explanation is the primary one smaller cities may therefore experience reduced inflows of human capital relative to the past and thus become poorer

disclosure and agency conflict evidence from mutual fund commission bundling abstract this study provides empirical evidence on the role of disclosure in resolving agency conflicts in delegated investment management for certain expenditures fund managers have alternative means of payment which differ greatly in their opacity payments can be expensed relatively transparent or bundled with brokerage commissions relatively opaque we find that the return impact of opaque payments is significantly more negative than that of transparent payments moreover we find a differential flow reaction that confirms the opacity of commission bundling collectively our results demonstrate the importance of transparency in addressing agency costs of delegated investment management

family proximity childcare and women s labor force attachment we show that close geographical proximity to mothers or mothers in law has a substantial positive effect on the labor supply of married women with young children we argue that the mechanism through which proximity increases labor supply is the availability of childcare we interpret availability broadly enough to include not only regular scheduled childcare during work hours but also an insurance aspect of proximity e g a mother or mother in law who can to provide irregular or unanticipated childcare using two large datasets the national survey of families and households and the public use files of the u s census we find that the predicted probability of employment and labor force participation is 4 10 percentage points higher for married women with young children living in close proximity to their mothers or their mothers in law compared with those living further away

waiting for mr right rising inequality and declining marriage rates abstract this paper demonstrates that women search longer for their first or second husband in cities with higher male wage inequality and examines several alternative explanations a causal link is established by controlling for city fixed effects and city specific time trends and by using inequality in the woman s state of birth as a proxy for local male inequality increasing inequality explains about 25 of the marriage rate decline over the last few decades and this is not due to the endogenous moving or labor force decisions of women nor to the marital decisions of men in reaction to changes in their own wages

why do fund managers increase risk abstract this paper examines the relationship between the increase in fund risk and subsequent cash flows we attempt to test the hypothesis that an increase in fund risk actually increases the net flows of equity funds which is a basic assumption of risk shifting we find that a change in fund risk has a positive and convex relationship with the fund s net flows the effect of risk changes on net flows is a natural consequence of its effects on inflows and outflows this paper s empirical results are robust to return frequency fund age and fund size our findings create incentives for managers to shift risk as documented in the mutual fund literature

canadian contributions to family economics canadian scholars have made substantial contributions to the relatively new field of family economics these include new models of how men and women match in marriage markets and of how decisions are made in multi person households several were early contributors to the literature on married women s labour supply and labour supply in a family context and helped to develop empirical methods in this area a particular focus has been on the impacts of policy relevant parameters such childcare costs on family labour supply and child well being new work on child development the impact of early life conditions and the processes of intergenerational transmission also highlight the importance of family context in determining economic well being

marriage and the city search frictions and sorting of singles this paper develops and tests a model where cities play an important role as marriage markets the idea is simple cities are dense areas where singles can meet more potential partners than in rural areas to enjoy those benefits they are willing to pay a premium in terms of higher housing prices once married the benefits from meeting more potential partners vanish and married couples move out of the city attractive singles benefit most from a dense market and are therefore more likely to move to the city those predictions are tested and confirmed with a unique danish data set

estimating social effects in matching markets externalities in spousal search this paper investigates the hypothesis that individuals are less willing to marry when there are more potential partners to search amongst and thus when others are also less prone to marry to do this it develops a reduced form method a variation on manski s 1993 model that allows identification of such spillovers in two sided matching markets estimates from this method are internally consistent unbiased robust to different definitions of the marriage market and large enough to warrant attention additional evidence suggests that the effect works via the proposed search mechanism

are ipo allocations for sale evidence from mutual funds combining data on brokerage commissions that mutual fund families paid for trade execution between 1996 and 1999 with data on mutual fund holdings of initial public offerings ipos i document a robust positive correlation between commissions paid to lead underwriters and reported holdings of the ipos they underwrite moreover i find that the correlation is limited to ipos with nonnegative first day returns and strongest for ipos that occur shortly before mutual funds report their holdings when the noise introduced by flipping is smallest overall the evidence suggests that business relationships with lead underwriters increase investor access to underpriced ipos during the hot initial public offering market of the late 1990s the typical initial public offering ipo was significantly underpriced and oversubscribed and the first day returns earned by investors in these ipos received considerable public attention 1 the source of these first day returns and related questions

the transition to flexible specialisation in the us film industry external economice the division of labour and the crossing of industrial divides there is increasing evidence that mass production methods are losing their dominance in the advanced industrial economies and that various forms of flexible production organization are on the rise the transition from mass production organization to flexible specialization is analyzed in detail through a case study of the film industry where it is shown that a system of production once based on product standardization high levels of vertical integration and stable oligopolistic market structures has after a period of vertical disintegration given way to a production system based on a deep division of labor between firms and high levels of flexibility in both product design and output levels the transition may be the result of increasing external economies of scale stemming from the development of the industry s social division of labor copyright 1989 by oxford university press

local amenities and life cycle migration do people move for jobs or fun abstract do households move for jobs or fun and where do they go when they move we address these questions using the 1970 2000 us census based on a panel of quality of life and business environment measures households prefer msas in warm coastal areas and non metropolitan locations while firms prefer large growing cities in addition cities with improving business environments acquire increasing shares of workers especially workers with high levels of human capital cities with improving consumer amenities become relatively more populated by retirees further analysis of individual level migration decisions indicates that regardless of marital status young highly educated households tend to move towards places with higher quality business environments this tendency is especially pronounced among highly educated couples who are more subject to job market co location problems in contrast regardless of education couples near retirement tend to move away from places with favorable business environments and towards places with highly valued consumer amenities these patterns help explain why areas unattractive to both households and business have struggled as with upstate new york while the sun belt and other regions are thriving