intrinsic bubbles the case of stock prices several puzzling aspects of the behavior of united states stock prices may be explained by the presence of a specific type of rational bubble that depends exclusively on aggregate dividends the authors call bubbles of this type intrinsic bubbles because they derive all of their variability from exogenous economic fundamentals and none from extraneous factors intrinsic bubbles provide a more plausible empirical account of deviations from present value pricing than do the traditional examples of rational bubbles their explanatory potential comes partly from their ability to generate persistent deviations that appear to be relatively stable over long periods copyright 1991 by american economic association

labor market segmentation a cluster analysis of job groupings and barriers to entry real expenditures on public assistance programs have increased substantially in the past two decades as has real per capita income investments in a variety of education programs have risen and a number of jobs programs have been tried although there have been some gains for example a decline in the percentage of the population in poverty 31 474 a number of disparities persist unemployment remains at record levels and the prospect for sizable reductions in the unemployment rate seems quite small there are persistent differences between the mean household incomes of blacks and whites that have not narrowed at all during the past two decades 15 there is also a widespread perception that a disadvantaged segment of the u s population has no effective access to good jobs and if such persons get them they do not stay employed for long this means that many such adults are caught in a cycle of unemployment welfare dependency bad jobs and intermittent employment whereas there is nearly universal agreement that the persistent disparities in well being are undesirable there is considerable disagreement on what to do about this in part the disagreement stems from ignorance about the facts for example rigorous operational definitions of good and bad jobs have not been developed the notion that some persons do not have access to the good jobs is primarily based on anecdotes fortunately longitudinal data bases are now available that permit more rigorous empirical analysis of such issues

employment discrimination an empirical test of forward versus reverse regression using data on faculty salaries at a large university we follow a methodology suggested by goldberger to conduct an empirical test of the conway roberts proposition that reverse and not forward regression is the proper way to detect salary discrimination we obtained 11 different estimates of the amount of salary discrimination not only are these estimates statistically inconsistent but they are also at variance with the estimate derived from the composite reverse regression therefore we conclude that in light of the econometric modeling used reverse regression does not yield an unbiased estimate of salary discrimination

occupational self selection a human capital approach to sex differences in occupational structure a rich and diverse literature exists concerning the distribution of labor incomes one approach namely that of human capital concentrates on lifetime accumulation paths of earnings capacity units human capital individual variations in human capital imply differences in earnings power thereby yielding strong implications concerning earnings distribution within a population despite its explanatory power the human capital model has been widely criticized one criticism centers on its inability to obtain inferences concerning occupational distribution the purpose of this paper is to alleviate at least some such criticism by applying the hedonic price approach so as to embed occupational choice into the human capital framework the significance is that neoclassical economic theory can be used to obtain implications concerning the determinants of occupational structure excerpt

the earnings and human capital of american jews this paper analyzes the earnings and returns from human capital investments of second generation american jews compared with non jews jewish men have 16 percent higher earnings other things the same a 20 percent higher rate of return from schooling and a steeper experience earnings profile these patterns persist even after controlling for occupation self employment status and geographic concentration in the new york area there are no systematic differences among jews by parents country of birth the findings suggest that american jews are more productive in creating and using human capital and that this has encouraged greater investments in human capital

cyclicality and the labor market for economists the 1987 academic market was strong whereas the 1997 market was weak a multimarket theory of optimal search suggests that job seekers will respond to a weakening market by changing their search strategies at the extensive margin which markets to enter and the intensive margin how many applications to submit per market employers respond to the weakening market by raising their hiring standards high quality applicants will obtain an increased share of academic interviews in weak markets while applicants from weaker schools will increasingly secure interviews outside of the academic market empirical results show that in the bust market graduates of elite schools shifted their search strategies to include weaker academic institutions while graduates of lower ranked schools shifted their applications away from academia and toward the business sector in bust conditions academic institu tions increasingly concentrate their interviews on elite school graduates women and u s residents

the effect of gender and race differentials on public private wage comparisons a study of postal workers this study argues that the aggregative specifications often used to examine wage diferentials fail to control for important demographic variations in wage patterns in testing how postal wages comp

panel estimates of male female earnings functions this paper applies single and simultaneous equation fixed effects fe and random effects re panel data estimation techniques to obtain male and female earnings function parameters using the panel study of income dynamics psid the paperfinds that earnings appreciation with experience and depreciation with labor market intermittency are comparable for men and women further skill atrophy rates increase not decrease once one controls for heterogeneity and endogeneity finally the unexplained male female wage differential declines from 40 percent to 20 percent when one adjusts for heterogeneity adjusting for endogeneity depends very much on the choice of instruments however when adjusting for endogeneity the gender earnings gap falls and approaches zero percent these results hold for two separate subsamples so that the estimates appear robust independent of sample selectivity

affirmative action and opportunity a study of female quit rates t he effectiveness of affirmative action efforts has been a topic of some controversy and the literature is unclear about whether women and or minorities benefit one source of confusion is that in some models the economywide effect can be in a different direction than the effect upon regulated or covered individuals and firms in a sense this is much like the minimum wage in that while some individuals benefit there is considerable controversy about the gains for target groups as a whole what is more surprising however is that the affirmative action literature is unclear about whether the programs achieve their goals for firms which are covered again in part this confusion is theoretical for wage and hiring directives may provide conflicting incentives beller 1978 another difficulty is methodological in that measures of affirmative action activity tend to be indirect 1 this last point as we shall see is especially true for studies of the federal contract compliance program this paper assesses the effectiveness of the federal contract compliance program which is administered by the office of federal contract compliance ofcc in improving opportunities for women rather than focusing on wage growth or the sex composition of occupations or firms as have all the previous studies we examine quit rates quits are a useful measure of people s perceptions about their opportunities and effective affirmative action programs may improve intra firm opportunities for advancement as a result subject to some caveats discussed below we expect that program effectiveness is captured by a reduction in quit rates from previous levels in addition this paper employs a more defensible measure of ofcc activities than is typical in most studies part i of the paper develops the model part ii introduces the data and the specifications the basic results are presented in part iii two major conometric difficulties whether the ofcc variables are actually proxies for other industry effects and the possible endogeneity of ofcc activity are addressed in part iv and the results are summarized in the final section

the labor market for new ph d economists presents results from a survey of 450 new 1996 97 ph d economists providing information about employment underemployment employers work activities salaries and job satisfaction comparisons are made across ranks of the graduates ph d programs sectors of employment and subfields of economics as well as over time labor market outcomes for economists also are compared with those of seven other disciplines results indicate that a growing proportion of new economics ph d s start their careers in business or industry that an international market for new economics ph d s is evolving and that job outcomes for economists compare favorably with new ph d s in many other disciplines

two to tango gender differences in the decisions to publish and coauthor i introduction there is a well developed mythology regarding the presence of old boy networks and their importance in explaining gender differences in labor market outcomes as articulated by saloner 1985 nonetheless aside from works such as simon and warner 1992 there is relatively little empirical evidence examining the impact of networks on market outcomes how these effects differ by gender and whether gender differences in network access change over time as women become more well represented in a profession the paucity of empirical evidence arises in part from the difficulty of measuring the presence of such networks prior work including that of saint paul 2001 and erickson and jacoby 2003 has found evidence that networks facilitate the adoption of team oriented work practices and information sharing that increase average worker productivity in management and professional jobs on the other hand studies such as that by marmaros and sacerdote 2002 have also found that women have less access to networks than their male counterparts in both private and public sector jobs which has been shown to yield gender differences in job placement and other labor market outcomes this article considers how gender differences in networks are manifested in a specific male dominated profession i e academic economists and in a specific work related outcome i e the decision to coauthor articles in which access to networks is likely to be important the analysis uses uniquely detailed individual and job level data for phd economists included in nearly four decades of american economic association aea membership to examine the role of networks on the joint decision to publish and coauthor the unique matching process of phd economists between academic and nonacademic jobs and within the hierarchy of academic departments along with the relative ease of observing joint research provide a rare opportunity to distinguish differential network access and measure joint production the results demonstrate the importance of networks in the production of research output and that new female entrants into a male dominated profession do not have equal access to these professional networks the results also provide evidence that women are able to plug into networks over time as the profession becomes more gender representative our study contributes to the literature on the role of networks in the labor market in several ways first the profession of academic economist is well suited to this study because it is made up of workers who produce a relatively homogenous output i e scholarly journal articles and that share a common set of job related tasks i e teaching research and service second the incidence of coauthorship is an observable outcome measure of network utilization a phenomenon inherently difficult to measure in the tradition of the business productivity literature as found in sabel 1993 third there is extensive evidence in the literature that journal publications are positively linked to academic salaries as found in siegfried and white 1973 and sauer 1988 that the propensity to coauthor is positively associated with publication output as in as found in durden and perri 1995 and maske et al 2003 that there are gender differences in tendencies to coauthor as shown by ferber and teiman 1980 and mcdowell and smith 1992 and that there are gender differences in professional outcomes such as publications salary and promotion as seen in mcdowell 1982 hansen et al 1978 formby et al 1993 and broder 1993 cumulatively these studies suggest that understanding the determinants of coauthorship is important for evaluating the sources and the extent of gender inequity in the profession prior work on coauthorship behavior has analyzed patterns over time and across disciplines several studies including hudson 1996 mcdowell and melvin 1983 and barnett et al

the wage effect of the occupational segregation of women in britain married females earn around 60 percent of the male rate of pay part of this wage difference der ives from inequality of pay within occupations and part derives from the different occupational distributions of the male and female workf orces this paper merges models of occupational attainment and gender wage distributions it shows that the gender wage difference derives largely from wage differences within occupations the effect of fema le nonparticipation in the paid workforce is found to be an important aspect of occupational attainment as well as of pay differences with in occupations copyright 1987 by royal economic society

so you want to earn a ph d in economics how much do you think you ll make john j siegfried using data from individuals who earned a ph d in economics in 1996 97 this study identifies factors associated with securing full time permanent positions and determinants of starting salaries for new ph d economists where individuals attend graduate school and factors including the field of specialization and work as a teaching research assistant impact whether graduates obtain full time permanent jobs choice of graduate program and amount of time spent in the program influence starting salary as does obtaining a position outside academia or in a research oriented academic institution both of which entail higher salaries relative to employment at a b a level academic institution jel j44 a10 1 introduction the job market for economists continues to be the focus of empirical studies that provide information on initial job placement the market process and differential market outcomes by age sex and graduate program rank for new ph d economists carson and navarro 1988 barbezat 1992 formby et al 1993 mcmillen and singell 1994 ehrenberg et al 1998 siegfried and stock 1999 stock and alston 2000 stock et al 2000 despite widespread interest in the job market little is known about influences on starting salaries for new ph d economists some salary information obtained by surveying department heads is disseminated each year at the traditional department chairs breakfast at the allied social science association s meetings curington and market 1996 and through the american economic association s aea universal academic questionnaire scott and siegfried 1999 2000 however this information reports only aggregate trends in starting salaries not an assessment of the effect of individual characteristics on starting salaries only two studies both limited to academics have examined starting salaries for individual economists formby et al 1993 examined 1987 88 starting salaries for academic economists using survey data obtained from 258 u s economics departments they found significantly higher starting salaries in higher cost of living areas in ph d granting departments and for individuals who began jobs after finishing their ph d who work in public universities who are in business schools and who are in highly ranked departments they found no significant demographic effects on starting salary with the exception that age was a slight detriment in non research oriented departments ehrenberg et al 1998 used aea salary data to study the influence of tenure probabilities on starting salaries of economists they found that departments with low tenure probabilities tend to pay higher starting salaries they also found differences in starting salary based on benefit packages and cost of living differences and for individuals who began jobs after finishing their ph d recent work by siegfried and stock 1999 presents a broad overview of labor market outcomes using a large survey of economics ph d s from the class of 1996 97 they document changes in market structure occurring over the past two decades including a shift from academic to nonacademic positions record numbers of new ph d s entering the market increasing proportions of foreign graduates and a growing number of foreign sector jobs in addition they present a general overview of factors influencing starting salaries which reveals salary premiums for u s citizens but no relationship between salary and other demographic attributes age sex marital status race those who took longer to earn their ph d and those working in academia earned lower salaries the purpose of this study is to explicitly identify and quantify determinants of starting salaries for new ph d economists using the siegfried and stock survey data we also identify factors associated with securing full time permanent positions in economics an important analysis because the percentage of new economics ph

are those paid more really more productive the case of experience this study uses computerized personnel microdata on the white male managerial and professional employees at a major u s corporation to address the following question can the additional earnings which are associated with more labor market experience at a point in time really be explained by higher productivity at the same point in time our answer to this question based on both cross sectional and longitudinal information is that performance plays a substantially smaller role in explaining cross sectional experience earnings differentials and earnings growth than is claimed by those who have adopted the human capital explanation of the experience earnings profile this response depends critically on our assumption that the performance ratings which supervisors give to their white male managerial and professional subordinates adequately reflect the subordinates relative productivity in the year of assessment we present a great deal of evidence which strongly supports this assumption

on decomposing the wage gap a critical comment on blinder s method many studies have found that the impact of schooling on earnings is greater for females than for males despite the fact that females tend to earn less both absolutely and controlling for personal characteristics this study investigates possible

employment opportunities earnings and the journey to work of minority workers in great britain the cost to minority workers of employer discrimination is generally measured in a competitive framework which focuses upon differences in on the job benefits usually wage rates between racial groups after training and experience are allowed for with other potential costs of employer discrimination given at best more subsidiary attention chiswick i 98 i dex i 984 mcnabb and psacharopoulos i982 mccormick i986 and stewart i983 have recently provided analyses of asian and west indian workers in the united kingdom this paper explores the consequences of employer discrimination if firms cannot discriminate by offering different wages for the same job but may set higher job rejection rates perhaps costlessly because markets do not clear our primary focus is upon comparative journey to work patterns and expenditures for asian and west indian workers in the united kingdom and whether these workers accept jobs at locations that would be unacceptable to whites in order to avoid either a longer spell of unemployment or an inferior occupation with commensurate lower earnings thus within a given residential area minority workers may experience greater commuting expenditures ceteris paribus which are overlooked when comparing earnings or occupational status unlike previous models of search and discrimination in labour markets the focus is placed upon employee response to discrimination rather than the search behaviour of discriminating employers see lippman and mccall i 976 the possibility that the costs of reaching suitable work sites should be incorporated into our understanding of the problems faced by minority workers has been investigated in the united states although in a different context by kain i 964 i 968 i 980 and various other authors including recently ellwood i983 kain considers that the cost of housing market discrimination is understated by focusing upon the relative price of housing for blacks because this overlooks how obstacles to black workers obtaining suburban accommodation concentrates the supply of black labour into comparatively declining inner city areas whereas kain argues that housing market discrimination reduces earnings net of travel costs by creating a spatial mismatch of workers and jobs the concern in this paper is that earnings net of travel costs are reduced because job market discrimination may increase average journey to work distance

women in the economics profession this article discusses evidence from recent literature on gender literature on gender differences among ph d economists it finds many gender similarities in accomplishments including undergraduate grades publication rates ceteris paribus and labor market commitment it finds no evidence of disadvantages for women in admissions to ph d programs or in nonacademic salaries yet gender differences remain ceteris paribus in gre scores attrition from ph d programs non tenure track academic jobs academic salaries and academic promotion rates the paper suggests that trends toward increasing percentage of females may be peaking particularly given recent drops in female undergraduate economics majors

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

dividend yield and expected returns abstract previous research examining the relation between dividend yield and equity returns documents a u shaped pattern arising from the positive capm adjusted average excess return of zero dividend firms in contrast this paper reports that zero dividend firms earn negative average excess returns relative to firms of similar size despite the apparent conformity of these results to the predictions of after tax asset pricing models the negative size adjusted excess returns cannot be drive solely by tax effects these excess returns which are concentrated in the initial zero dividend years and approach 1 per month are attributed to possible dividend expectation effects rather than taxes

detecting and removing discrimination under equal opportunities policies abstract this paper surveys part of the recent voluminous literature on the economics of discrimination focusing on two key questions first how should discrimination be measured and can in fact unambiguous estimates be derived as the basis for detecting where discrimination is present and setting in train measures to eliminate it second to what extent has the implementation of equal opportunities legislation improved the relative standing of women and minority workers in the labour force this section includes a discussion of the likely effects of recent changes in the law such as the equal value amendment in the uk or the introduction of comparable worth in the usa the survey concludes that our ability to detect discrimination at all precisely is still rudimentary and consequently policy measures are likely to be inefficient for this reason

heterogeneous human capital occupational choice and male female earnings differences human capital models have mainly focused on the rate of return to investment in a homogeneous stock of capital yet individuals have different initial attributes that determine comparative advantage in producing different types of human capital we find that mathematical ability is an important determinant of field choice for college students and that differences in earnings across fields are largely explained as a return to the use of scarce quantitative abilities in the production of each type of human capital the model successfully accounts for the observed male female differences in earnings and occupational choices of recent college graduates

gender differences in first jobs for economists over the last several decades women have made substantial progress into traditionally maledominated professions reflecting this trend much recent research has focused on explaining the choice of profession and the gender composition of the workforce 5 23 16 however a focus on occupation choice may conceal interesting patterns within professions because a profession can include a number of different job types with a distinct mix of professional activities the dual labor market phenomenon of primary and secondary jobs may also be present although perhaps to a lesser extent within a particular profession 17 gender differences in composition of employment among the various jobs within a profession could thus affect the status pay and advancement of women in the occupation if women primarily place in secondary type jobs the advantages of entering a profession will be lower for women relatively little is known about career choice within a profession 15 in this paper we model the first job choice of economists among several careers and use data on new ph d economists over the last thirty years to examine whether career choices differ by gender over a period of low but increasing representation of women an advantage of our single profession analysis is that it contains a relatively homogeneous set of workers with quantitative human capital measures that other studies of job choice suggest are important 7 there is significant variation in career choices available within economics that permits possible market segmentation 2 there are research and teaching academic jobs and the government and private sectors employ large numbers of economists we find significant structural differences in the placements of male and female economists indicating that the choices of female economists differ from those of their male counterparts both within academia and between this and other sectors the economics profession provides a useful background to examine gender differences in the career choices of professionals in a male dominated occupation over the last 30 years the average number of ph d s conferred annually in the u s has increased from approximately 300 to over 800 reflecting increased opportunities for economists within economics departments and expansion of other academic government and private sector jobs at the same time the proportion

housing bubble contagion from city centre to suburbs most previous studies have reported that housing prices diffuse from the city centre to surrounding areas however these studies have overlooked the fact that housing prices comprise fundamental and bubble prices we investigated whether bubble prices also diffuse from the city centre to suburbs and whether fundamental or bubble prices promote housing price diffusion we focused on the movement of housing bubbles from the city centre to the suburbs using data for the taipei metropolitan area from 1973 to 2014 for empirical analysis our state space model estimates statistically significant fundamental and bubble prices in taipei city city centre and new taipei city suburbs engle granger cointegration test results reveal that the housing and bubble prices of the two cities are cointegrated however fundamental prices are not f statistics reveal that the granger causality of bubble prices the central city granger causing changes in the suburbs is more significant and powerful than that of the fun

bubbles in us regional house prices evidence from house price income ratios at the state level we investigate the presence of bubbles in the us house price income ratio at the state level by applying the recent time series based econometric test to data from january 1975 to december 2014 we

the rise in house prices in china bubbles or fundamentals the dramatic rise of house prices in many cities of china has brought huge attention from both the governmental and academic circles there is a huge debate on whether the increasing house prices are driven by market fundamentals or just by speculation like levin and wright 1997a 1997b we decompose house prices in china into fundamental and non fundamental components we also consider potential nonlinear feedback from the historical growth rate of house prices on the current house prices and propose a semiparametric approach to estimate the speculative components in the model we demonstrate that the non fundamental part contributes a relatively small proportion of the rise of house prices in china su and jin thank the nsfc for research support under grant no 70501001 citation hu jianying liangjun su sainan jin and wanjun jiang 2006 the rise in house prices in china bubbles or fundamentals economics bulletin vol 3 no 7 pp 1 8 submitted march 20 2006 accepted march 28 2006 url http www economicsbulletin com 2006 volume3 eb 06c20006a pdf

density social networks and job search methods theory and application to egypt we first develop a theoretical model in which individuals are embedded within a network of social relationships we show that conditional on being employed the probability to find a job through social networks relative to other search methods increases and is concave with the size of the network the effects are stronger for the uneducated there is however a critical size of the network above which this probability decreases we then test empirically these theoretical findings for egypt using the 1998 labor market survey the empirical evidence supports the predictions of our theoretical model

the impact of informal networks on quit behavior sector disaggregation the change in the level effect accounts for only 0 35 0 41 percentage point of the 2 24 percentage point deceleration in labor productivity growth between the 1948 65 and 1973 78 periods the aggregate rate and level effects are not very sensitive to the degree of disaggregation 12versus 60 sector although some large level effects are evident within and across major industrial divisions they often cancel out in the aggregate however the level effect from the shift out of farming is quantitatively large and is close to the aggregate level effect using either 12 sector or 60 sector disaggregation although one can approximate the aggregate level effect by looking only at that for agriculture one should note that other fairly large level effects exist both within and across major industrial divisions other than agriculture

marital status child rearing and earnings differentials in the graduate labour market differential the importance of family role specialisation for the measurement of the residual earnings differential is examined within a sample selection model of participation and earnings the earnings differential between men and women may be divided into that explained by different characteristics and attributes and that due to residual factors one element of this residual may be discrimination although other factors may be incorporated in the unexplained component the residual also incorporates the effects on earnings associated with the production of home goods see polachek ig75 a b these will occur

discrimination fact or fiction an examination using an alternative approach women earn less than men blacks earn less than whites these facts are blatantly observable in the economy with the proliferation of civil rights legislation in the last two decades social scientists have become increasingly concerned with the determination of the wage gap attributable to discrimination because workers have different productivities statistical methods have been used to isolate the discrimination effect from wage differences justified by differences in productivity the primary method estimates an equation with wages expressed as a function of productivity and sex or race since productivity cannot be directly observed a number of proxies for productivity have been used such as education tenure and experience statisticians 11 have shown that the necessity of using proxies results in statistical biases which may tend to overestimate discrimination they have shown that mismeasuring any independent variable can impart a bias on each regression coefficient thereby causing a severe misestimate of discrimination these errors are proportional to the degree of mismeasurement the relative degree of error variance in the independent variables as well as to the amount of intercorrelation between each variable and race or

job information networks neighborhood effects and inequality this paper explores the theoretical and empirical literature to examine the use by different social groups of informal sources of information provided by friends relatives and acquaintances during job search and its consequences for the job market it also addresses the role of network structure and size the resource endowments of contacts and nature of the links between contacts to explain differences in the effects of job information networks in doing so the paper also turns to the sociology literature on job information networks and provides an economic perspective on such sociological concepts as strong versus weak ties inbreeding distance from structural holes etc the paper distinguishes between models of exogenous job information networks that is where individuals obtain job related information through a given social structure and endogenous job information networks which are social networks that result from individuals uncoordinated actions the paper pays special attention to such issues as physical and social proximity and sharing of information and discusses them in the context of the recent social interactions and neighborhood effects literature finally the paper outlines a model that integrates job information networks where interactions occur in business cycle frequencies with the dynamics of human capital formation which include the joint effects of parental community and neighborhood human capital and are set in life cycle frequencies for the purpose of organizing suggestions for future research and examining earned income inequality

rational bubbles or persistent deviations from market fundamentals abstract tests for fractional integration in the s p 500 log dividend yield are conducted in order to test the proposition that exogenous shocks have permanent effects the presence of a unit root in the log dividend yield is consistent with rational bubbles in stock prices our findings based on tests for fractional integration yield robust rejections of the null hypothesis of rational bubbles the results strongly suggest that the log dividend yield is mean reverting

gender and promotion in the economics profession the authors use unique panel data on american economic association members to test for gender differences in promotion in a profession with a well defined promotion and job hierarchy and in which men and women exhibit similar labor market attachment the results suggest that over the period from the 1960s through the early 1980s female economists had lower levels of professional attainment and career advancement than did their male colleagues with similar attributes these gender differences remain in evidence despite controls for unobserved heterogeneity and self selection between academic and non academic jobs there is evidence however that promotion prospects for female economists significantly improved during the 1980s not only at all ranks but also within both ph d granting institutions and non ph d granting institutions in fact the results reveal no unexplained gender specific differences in promotion by the end of the 1980s

the gender salary gap in british academia this paper considers salary determination and the gender salary gap in the academic labour market utilizing a particularly detailed data set of academics from five old established universities results reveal an aggregate gender salary differential for academic staff of 15 most of this differential can however be explained by our model evidence suggests a limited opportunity for female academics to combine career and family despite the flexibility of an academic job and emphasizes the importance of mobility to the male career publication record is found to be an important determinant of salary

selectivity bias and earnings differences by gender and race abstract the effect of selectivity bias on earnings differences due to labor force participation decisions is investigated using current population survey and census data the magnitudes of observed earnings differences by both race and gender are clearly influenced by the presence of selectivity bias

affirmative action and labor markets affirmative action remains controversial the controversy extends from the original antidiscrimination legislation and its interpretation to estimates of affirmative action s effect on the labor market this paper provides a progress report on our recent efforts at detecting the effects of affirmative action on minority wages and employment although we find a substantial increase in wages for black men and black women over our sample period the timing of these wage changes is surprising most of the wage gains came prior to 1974 before the establishment of an effective monitoring structure for affirmative action indeed when the powers of the eeoc and ofcc are greatest the wage effects for young blacks are somewhat perverse using eeo 1 reports we find a major shift in black employment toward firms most vulnerable to the monitoring and potential sanctions of the affirmative action programs as with wages the shift in minority employment came prior to the expansion of the powers and budgets of the ee

imperfect signalling affirmative action and black white wage differentials the existence of black white wage differentials has received considerable attention in the economics literature imperfect information provides the underpinning of several models which attempt to explain such differentials 1 2 3 4 11 arrow s work for example shows that when screening is costly and expectations of productivity differ across groups wages may differ between individuals with identical productivity 2 3 borjas and goldberg point out that biased screens may lead to wage differentials even when the two groups have identical distributions of productivity 4 it is important to note that these differentials arise in the absence of discriminatory tastes among market participants other researchers have investigated the impact of affirmative action programs on minority majority wage differentials welch indicates the kinds of wage differences which can arise under certainty about productivity levels 12 lazear demonstrates that the apparent narrowing of blackwhite differentials under affirmative action may well be an illusion due to the failure to measure non pecuniary income in the form of on the job training 7 while these models provide an appealing explanation of the main outlines of minoritymajority wage differentials they do not explain another stylized fact which has been observed recently a study of academicians revealed that black males with a number of publications earned more than their white counterparts whereas black male academics with no publications earned less than comparable whites 5 olneck showed that in terms of occupational status the return to college graduation was higher for non whites than for whites but the return to secondary education was lower 6 159 90 similarly while the income of college educated black males rose relative to that of whites of similar qualifications between 1967 and 1978 the income of less educated black males fell relative to that of their white counterparts over the same period sowell has argued that this skewing of the relative distributions is a result of affirmative action programs 9 10 although the quotas seem to increase the demand for minority workers their legislative framework increases the

a simulation based approach to the study of coefficient of variation of dividend yields abstract existing empirical studies of dividend yields and dividend policies either make no assumption or the normal distribution of the dividend yields data the statistical results will be biased because they cannot reflect the finite support set property of dividend yields which can only range from 0 to 1 we posit that the assumption that dividend yields follow a beta distribution is more appropriate the coefficient of variation cv is used to measure the stability of dividend yields if we assume dividend yields follow a normal distribution then the maximum likelihood estimate for coefficient of variation is given by s x this only gives us a point estimate which cannot depict the full picture of the sampling distribution of the coefficient of variation a simulation based approach is adopted to estimate cv under the beta distribution this approach will give us a point estimate as well as the empirical sampling distribution of cv with this approach we study the stability of dividend yields of the hang seng index and its sub indexes of the hong kong stock market and compare the results with the traditional approach

state enterprise relation local economic priority and corporate environmental responsibility this paper empirically investigates how the state enterprise relation and local government s economic priority affect corporate environmental responsibility in a sample of chinese polluting enterpr

speculative bubble spillovers across regional housing markets in this paper we determine whether speculative bubbles in one region in the united states can lead bubbles to form in others we first apply a regime switching model to determine whether speculative bubbles existed in the u s regional residential real estate markets our findings suggest that the housing markets in five of the nine census divisions investigated were characterized by speculative bubbles we then examine the extent to which bubbles spill over between neighboring and more distant regions finding that the transmission of speculative bubbles and nonfundamentals between regions is multidirectional and does not depend on contiguity or distance

the effect of britain s anti discriminatory legislation on relative pay and employment pressive increase in the number of women in the labour force during the i970s between i970 and i980 female relative employment increased by i8 3 and female relative hours by i 7 6 in this paper we attempt an evaluation of the possible effects of anti discriminatory legislation by considering the labour market as a whole taking into account not only relative employment but also other factors that through their influence on demand and supply may have affected relative pay the prima facie evidence in favour of the effectiveness of this legislation is very strong and we want to see if this evidence is maintained after considering all these additional factors and their interaction within the context of the labour market in the first section we present the main facts under analysis the analytical framework to consider the joint effect of the legislation on pay and employment and the

party control of state government and the distribution of public expenditures this paper examines the effects of party control of state governments on the distribution of intergovernmental transfers across counties from 1957 to 1997 we find that the governing parties skew the distribution of funds in favor of areas that provide them with the strongest electoral support this is borne out in two ways i counties that traditionally give the highest vote share to the governing party receive larger shares of state transfers to local governments ii when control of the state government changes the distribution of funds shifts in the direction of the new governing party we find only weak evidence that parties reward electorally pivotal counties or counties in electorally pivotal legislative districts finally we find that increased spending in a county increases voter turnout in subsequent elections this suggests that parties have an electoral incentive to skew the distribution of funds to influence future election results and the mechanism through which this works is mobilization rather than conversion of voters in a fixed electorate

firm location political geography and environmental information disclosure abstractas the subjective and objective factors that influence corporate behaviours political region and firm location are of great importance to environmental information disclosure eid with spatial and political geography as a research perspective this article makes a study by using the samples of manufacturing listed companies from 2009 to 2011 as a result we determine that regulatory distance and political geography had negative effects on eid while political geography weakens regulatory distance s function after considering an enterprise s administrative rank we determined that when the rank is higher regulatory distance has negative effects on eid when the rank is lower the effects are the opposite regarding political geography it always weakened the regulatory distance s function moreover the effects are significant only when the enterprises had low governmental regulation the study shows the effects that firm location and political geography have made on eid at the same time th

are housing bubbles contagious a case study of las vegas and los angeles home prices this paper asks whether speculative house price pressure in an economic center can spill into related housing markets in other words are bubbles contagious i develop a theoretical model that allows for speculative price appreciation to spread from one market to another i estimate an error correction model using quarterly housing data for las vegas and los angeles and fundamental market variables from 1978 quarter 2 through 2008 quarter 1 las vegas prices show significant persistence and adjust slowly to disequilibrium contagious price and income growth from the los angeles market sustained by naive expectations contributed to the bubble that formed in las vegas

labor force participation work experience and the pay gap between men and women previous research on the relationship between women s educational attainment and the timing of entry into parenthood has produced conflicting results although studies have consistently found that educational attainment has a delaying effect on entry

the gender pay gap beyond human capital heterogeneity in noncognitive skills and in labor market tastes abstract focused on human capital economists typically explain about half of the gender earnings gap for a national sample of mbas we account for 82 percent of the gap by incorporating noncognitive skills for example confidence and assertiveness and preferences regarding family career and jobs those two sources of gender heterogeneity account for a quarter of the explained pay gap with half due to human capital variables and the other quarter due to hours worked and current job characteristics female mbas appear to pay a penalty for good citizen behavior choosing jobs that contribute to society and characteristics higher ethical standards

occupational change employer change and the transferability of skills the individual propensity to change occupations has been little analyzed by economists despite its important implications for income growth and market adjustment individual income growth is commonly associated with one form of occupational change that of upward occupational mobility several examples of upward mobility sequences are technician to engineer to manager receptionist to secretary to administrative assistant laborer to operative to craft worker changes in these directions are likely to be accompanied by income growth and conversely downward occupational mobility would decrease income the implicit cause of the income growth associated with upward mobility is the increase in the individual s skills and the return to those skills in other words each of the sequences listed above appears to represent a discontinuous sequence of investments in occupational skills the resulting life cycle profile of investment and income growth is discontinuous and concave similar life cycle profiles would characterize an individual s change of employer or region yet these latter two types of mobility have received much more attention by economists than has occupational change this paper attempts to address this gap by developing a human capital investment model describing the direction and timing of occupational change to place the research described below in perspective one must first ask why there has been so little analysis of occupational change sociologists have long been interested in occupational mobility analyzing it as a means of upward income mobility yet economists have focused on models of occupational choice disregarding occupational change over the life cycle 4 15 these models of occupational choice rely most heavily on the effects of formal schooling thus disregarding the majority of the labor force for whom formal schooling is not a major determinant of either occupational choice or subsequent occupational change two factors may have contributed to the lack of interest in occupational change first the analysis of occupational change has relatively little direct policy relevance as compared to the analysis of labor institutions for example occupational change was last examined in

downward bias in a new measure of wage discrimination abstract wage discrimination measured as a comparison of male and female characteristics within the same wage bracket is shown to differ from the conventional measure by excluding the wage regression constant term australian data confirm that this provokes downward bias

executive compensation female executives and networking the phrase it s who you know not what you know that counts is often heard in conversations about people who get ahead in economic terms this phrase translates into it s your connections not your human capital investments that count this study attempts to determine the influence of networking in addition to human capital investments by examining a sample of top female executives in the united states we conclude that networking is as important as performance variables in helping women climb the corporate ladder

black white life cycle earnings differences and the vintage hypothesis a longitudinal analysis a common finding of virtually all previous studies of black white earnings differences is that the earnings of white males appear to rise at a more rapid rate with each additional year of work experience or with age than do the earnings of black workers this finding has been noted by economists since at least the mid 1950 s when morton zeman called

a new approach to estimating value income ratios with income growth and time varying yields abstract value income ratios such as dividend yields in finance and price rent ratios in housing and real estate markets impact society in a variety of ways this paper proposes a new type of the present value model that features income growth with time varying yields it offers a new risk perspective which may alleviate timid investor behavior in market downturns while cooling down the market in seemingly booming times a binding relationship the value income ratio adjusted by yields of the asset and growth in income is revealed this has notable implications for empirical research which examines value income ratios time and again incorrectly perceived market behavior distorts the formation of investor behavior and vice versa which has serious consequences to the functioning of the market and beyond

affirmative action as earnings redistribution the targeting of compliance reviews affirmative action may be broadly conceived of as pursuing either the goal of reducing discrimination or that of redistributing jobs and earnings i attempt to infer the ends of affirmative action policy by analyzing the historical record of enforcement optimal enforcement strategies are developed for both the antidiscrimination and the earnings redistribution models and then compared with new data on the actual targeting of affirmative action compliance reviews during the late 1970s i find that establishments with very low proportions of minority or female workers are not significantly more likely to be reviewed but that white collar intensive establishments are more likely to be reviewed this indicates the shortcomings of the antidiscrimination model in explaining the ofccp s behavior and suggests the potential usefulness of the earnings redistribution model

gender differences in the changing labor market the role of legislation and inequality in changing the wage gap for qualified workers in the united kingdom we use detailed cohort data from three surveys of graduates to examine two explanations for the large decline in the male female wage gap that occurred in the united kingdom during the early 1970s the first attributes the fall to gender specific factors most notably the introduction of antidiscrimination legislation the second explanation argues that these changes were largely in respon ie to changes in the wage structure and in particular to the introduction of income policies our findings show that for u k graduates all the change in relative wages that occurred in this period can be accounted for by gender specific forces

the measurement of race and gender wage differentials evidence from the federal sector this paper presents an empirical analysis of wage differentials based on race and gender in the federal bureaucracy by focusing on the study of interagency variations in wage differentials the au

job contact networks abstract many workers hear about or obtain their jobs through friends and relatives the aim of this paper is twofold first we relate both individual and aggregate labor market outcomes to the network structure of personal contacts second we study strategic network formation to this purpose we develop a model specifying at the individual level both the decision to form contacts with other agents and the process by which information about jobs is obtained and transmitted we show that equilibrium networks always exist and that only moderate levels of network asymmetry can be sustained at equilibrium also we establish a general non monotonicity result on information flow and unemployment with respect to network size in symmetric networks

black white earnings ratios since the civil rights act of 1964 the importance of labor market dropouts published median earnings of wage and salary workers by race and sex are based on distributions that exclude those without earnings and those not employed as wage and salary workers at the time of the survey it has been argued that the changing importance of these exclusions rather than any improvement in the distribution of offered wages for blacks accounts for the apparent increase in black white relative median earnings this paper presents a new method for correcting the published medians for such censoring the apparent improvement in relative earnings is reduced but not eliminated by the correction

labor market discrimination against hispanic and black men h ispanic american men have lower average wage rates than white non hispanics in 1975 the average white non hispanic male wage earner in the united states earned 5 97 an hour mexican men earned 4 31 72 as much as white non hispanics puerto rican men earned 4 52 76 as much and cuban men earned 5 33 89 as much as white non hispanics by way of comparison black men s average wages in 1975 were 4 65 78 of the white male wage several possible reasons for the hispanics lower wages come to mind among them are age and education geographic location immigration language difficulties and discrimination for example as shown in table 1 mexicans and puerto ricans are younger on average than the white non hispanic population and earnings tend to rise with age hispanics have lower average levels of education than white non hispanics and wages are positively associated with education many mexican americans live in the southwest where prices are relatively low moreover hispanics are more likely to be recent immigrants and to lack fluency in english than white non hispanics and so to be at a disadvantage in the labor market in addition there is a widespread belief that hispanics suffer from employment discrimination and cannot obtain the wages that their human capital would command if they were non hispanic whites how much of the wage differentials described above are due to each of these factors and to other inter group differences in wage related characteristics in particular how much impact does labor market discrimination have on the average hispanic man s wage and how does this compare with discrimination against blacks this paper provides answers to these questions a few other efforts have been made to analyze the relative earnings of hispanic and white nonhispanic men using 1960 and 1970 census data fogel 1966 poston and alvirez 1973 poston alvirez and tienda 1976 long 1977 and gwartney and long 1978 we use more recent data from the 1976 survey of income and education this data set enables us to measure wage rates more accurately and to specify the wage function more completely than does the census unlike previous analysts in estimating the wage function we take account of possible selectivity bias due to the distinction between average wage offers and average observed wages thus we hope to obtain a more accurate and up to date measure of labor market discrimination against hispanic men section ii explains the method used to separate the minority white non hispanic wage differential into the portions due to differences in average characteristics and the portion due to differences in unobserved factors and discrimination taking into account the possibility of selectivity bias in the observed wage sample section iii describes the data used in the study and the specification of the wage equation the breakdown of the observed wage differentials into components due to differences in participation in the wage and salary sector local price levels average characteristics and discrimination are presented in section iv section v summarizes our findings and discusses their implications for efforts to improve the economic situation of hispanics in the united states

an analysis of the earnings and employment of asian american men this paper analyzes the earnings and employment of chinese japanese filipino and white men born in the united states the chinese and japanese have higher levels of schooling and earnings than white men and the japanese work more weeks ceteris paribus there are no substantive group differences in these variables or in returns from schooling the filipinos have a lower level of schooling earnings employment and returns from schooling it is therefore not appropriate to view asian americans as a single disadvantaged minority group further the success of the chinese and japanese challenges conventional wisdom regarding the consequences of racial discrimination

the price dividend ratio and limits to arbitrage evidence from a time varying estr model abstract recent share price dynamics has led to much debate within academic and practitioner circles researchers have typically argued that either a bubble component exists within prices or that the price dividend relationship exhibits persistence this note shows that an empirical model designed to capture limits to arbitrage can explain the movement in prices over the recent past

male female differences in occupational choice and the demand for general and occupation specific human capital a human capital model of occupational choice as demand for general and occupation specific human capital is developed to show how women s occupational choices vary with their lifetime labor force participation patterns the model is tested using data from the national longitudinal survey of mature women the major empirical finding is that women who take less home time choose occupations which require more human capital especially specific human capital women s occupations and wages are quite responsive to changes in their labor force participation patterns if women worked continuously their occupations and wages would be much closer to those of men

o papel das redes sociais na condicao do desempregado uma analise usando a teoria de matching the paper investigates whether the size of social networks can aect the unemployment rate of the economy therefore based on a theoretical model of matching i propose a technique for simulating the eects of networks on the employability of workers the proposal is applied to a database of portugal noting evidence that there is an optimal size of network that minimizes the unemployment rate

a test for rational bubbles in the nasdaq stock index a fractionally integrated approach abstract in this paper we test for the presence of rational bubbles in the nasdaq stock market index over the period 1994 06 2003 11 by means of a methodology based on fractional processes the results suggest that the existence of bubbles depends on the sampling frequency used in the analysis we cannot reject the unit root hypothesis when using monthly data on price dividend ratios which according to the present value model suggests the existence of rational bubbles however we reject this hypothesis in favor of fractional alternatives when using daily and weekly data this might be explained by the temporal aggregation and or the sample sizes used in the application

sex discrimination in the promotion process previous research has suggested that intra occupational earnings differences are the principal source of the long standing earnings gap between men and women following that line of research this study examines the extent of gender differences in the incidence of and returns to promotions drawing on the quality of employment panel the authors compare the earnings and promotion experience of men and women over the period 1973 1977 after controlling for unmeasured differences in job level and constant individual ability in a fixed effect model they conclude that the returns to promotion are comparable for men and women further analysis indicates however that women are held to higher promotion standards than men and therefore receive fewer promotions than men with equal measured abilities although the female male wage ratio in this sample increased by nearly 6 percent over four years the increase could have been as much as 9 2 percent if women and men had been held to the same promotion standards

errors in variables and reverse regression in the measurement of wage discrimination abstract several recent articles have proposed reverse regression as a solution to errors in variables problems in wage discrimination regressions this note demonstrates that the reverse regression approach is biased against finding evidence of discrimination

race ranking promotions and pay at a federal facility a logit analysis this study analyzes rank assignments and promotions among a group of federal civilian employees at a u s army base with special attention to racial differences by estimating a multinomial logit model and using pooled data from four different years the authors find that position and compensation although closely related are by no means identical nor are promotions and changes in pay for example the racial differential in compensation at this base is accompanied by a racial differential in ranking under which blacks are more likely than comparable whites to be in blue collar occupations and less likely to be in white collar occupations whereas the gender differential in compensation is accompanied by a gender differential in ranking under which women are more likely than comparable men to be in low level white collar occupations and less likely to be in other occupations similarly a narrowing of the racial differential in earnings over time coexisted with a racial differential in promotions that

salary differentials by sex in the academic labor market this paper examines faculty time allocation decisions that are fundamental to the functioning of a university a random utility approach yields a grouped data multinomial logit model and predicts that time allocation decisions depend systematically on

synchronisation and commonalities in metropolitan housing market cycles this paper examines the degree of commonalities present in the cyclical behaviour of the eight largest metropolitan housing markets in australia using two techniques originally proposed in the business cycle literature we firstly consider the degree of synchronisation present and secondly decompose the series into their permanent and cyclical components both empirical approaches reveal similar results sydney and melbourne are closely related to each other and are relatively segmented from the smaller metropolitan areas in contrast there is substantial evidence of commonalities in the cyclical behaviour of the remaining cities especially those on the eastern and southern coasts of australia

where are they now tracking the ph d class of 1997 we report early career outcomes of economics ph d s by tracking the u s class of 1996 1997 we examine employment outcomes work activities salaries and graduates attitudes toward their jobs by 2003 all of the respondents were employed although almost half changed employers during the six years salaries of the cohort increased at an average annual rate of 8 2 from 1997 through 2003 academic year salaries rose about 5 7 per year whereas private sector salaries skyrocketed at 15 per year finally the median salaries of first year full time permanent 9 to 10 month academic economists hired in 2002 2003 actually exceed the median 2003 salaries of their counterparts initially hired in 1997 1998 some of this apparent salary inversion reflects a different mix of employers and departments between the two cohorts with the younger group securing relatively more jobs at higher paying institutions

seasonality and cointegration of regional house prices in the uk the data generation process underlying regional house prices in the uk is investigated using new statistical tests it is found that causal flows tend to be northwards the south east rather than greater london acts as an exogenous price determinator of the other regions in the south the midland regions have a great influence on prices in the north and flows through the east midlands are characterised by bi directional causality these results are largely independent of assumptions made about the data generation process and tests of these assumptions have low power in any case there are also similarities between this causality and migration patterns particularly in the south of england

a new look at the causes of the improved economic status of black workers the wage differential between black and white men fell from 40 percent in 1960 to 25 percent in 1980 it has been argued that this convergence reflects improvements in the relative quality of black schools to test this hypothesis we assembled data on

baseball specific human capital why good but not great players are more likely to coach in the major leagues the career choice of retiring athletes provides an interesting example of a midcareer transition conditioned on specific human capital previous research examines the determination of earnings in professional sports 3 5 14 but does not consider how skills developed during an athlete s playing years affect subsequent opportunities in this paper i test the hypothesis that skills specific to baseball increase the probability a player will choose to coach the empirical work confirms the importance of baseball specific human capital in the decision to coach and provides some of the first formal evidence that the opportunities of star players differ distinctly from players that are marginally less talented in the theoretical section i develop a random utility model in which a retiring player chooses between coaching and non coaching careers on the basis of potential earnings and a random taste component earnings in either career are determined by a vector of career attributes that embody the player s productivity in each if the random taste component is normally distributed the probability a player chooses a coaching career can be estimated using probit the empirical results support the predictions of the model that baseball specific human capital is positively correlated with the probability of a player coaching and that star players are unlikely to coach because their marginal skill advantage is not baseball specific in particular the findings imply that players with long but unexceptional careers are more likely to coach in the major leagues an extension of the empirical model is applied to the issue of discrimination the insignificance of a black dummy variable suggests that black players have the same probability of coaching as comparably skilled white players however a more complex interactive specification suggests that relatively poor opportunities for black stars outside the game leads to their crowding out those black players who if they were white would most likely coach

comparable worth wage adjustments and female employment in the state and local sector our paper simulates the likely effects of a comparable worth wage adjustment policy in the state and local sector on female employment in the sector the simulation is based on estimates of within occupation male female substitution and across occupation occupational employment substitution that we obtain using data from the 1980 census of population