This chapter synthesizes and critically reviews the modern instrumental variables (IV) literature that allows for unobserved heterogeneity in treatment effects (UHTE). We start by discussing why UHTE is often an essential aspect of IV applications in economics and we explain the conceptual...

This paper reviews the literature on firm wage differences and the fixed effects methods typically used to measure these differences. High wage firms tend to be more productive, larger, more sought after by workers, and to employ more credentialed and higher wage workers. The latest evidence...

One of the outcomes of the Brexit referendum result was that EU nationals were required to register on the EU Settlement Scheme (EUSS) if they wanted to remain in the UK after its departure from the EU. In order to be granted settled or pre-settled status, applications needed to have been...

While Western countries worry about labor shortages, their institutional barriers to skill transferability prevent immigrants from fully utilizing foreign qualifications. Combining administrative and survey data in a difference-in-differences design, we show that a German reform, which lifted...

This paper studies how aggregate labor market conditions affect the intragenerational assimilation of immigrants in the hosting country. Using data from the American Community Survey, we leverage variation in the forecast errors for national and local unemployment rates in the US at the time of...

Labor economists increasingly work in empirical contexts with large numbers of unit-specific parameters. These settings include a growing number of value-added studies measuring causal effects of individual units like firms, managers, neighborhoods, teachers, schools, doctors, hospitals, police...

Over the past two decades, there have been significant changes in family dynamics and labor market interactions, with shifts in fertility, marriage, divorce, cohabitation, family labor supply, gender inequality, and childrearing. This chapter examines the impact of government policies on these...

This chapter, prepared for the Handbook of Labor Economics, presents a comprehensive overview of how labor economists understand job search among the unemployed and how job search is shaped by unemployment insurance (UI) and active labor market policies (ALMP). It focuses on synthesizing key...

This chapter surveys the literature on the impact of minimum wages on low-wage labor markets. We describe and critically review the empirical methods in the new minimum wage literature, particularly those leveraging quasi-experimental variation. We provide a quantitative overview of the most...

The economics of crime has emerged as a critical field over the past 30 years, with economists increasingly exploring the causes and consequences of criminal behavior. This chapter surveys key contributions and developments from labor economists, who investigate the (often two-way) intersection...