In this paper we use indirect inference to estimate a joint model of earnings, employment, job changes, wage rates, and work hours over a career. Our model incorporates duration dependence in several variables, multiple sources of unobserved heterogeneity, job-specific error components in both...

For birth cohorts 1935-44, 1945-62, and 1964-74, we estimate the contribution of education; permanent heterogeneity in wage rates, employment, and hours; labor market shocks; spouse characteristics and shocks; nonlabor income shocks; and marital histories to the age profiles of the variance of...

The authors estimate consumption and labor supply models for Canada using U.S. variables as instruments instead of lagged Canadian variables. The results suggest that the endogeneity of lagged variables has not been a serious problem in previous studies. They also develop estimation methods for...

We consider the classic problem of estimating group treatment effects when individuals sort based on observed and unobserved characteristics that affect the outcome. Using a standard choice model, we show that controlling for group averages of observed individual characteristics potentially...

The authors examine the relationship between the receipt of employer-provided training and the characteristics of workers and jobs using data from the National Longitudinal Survey of the High School Class of 1972 and the Dictionary of Occupational Titles. They find that the intensity of training...

Using the Panel Study of Income Dynamics, the authors provide a set of facts about vacation leave. They show that on average, vacation time taken rises one-to-one with paid vacation; annual hours worked fall by about one full-time week with every week of paid vacation; the amount by which...

The authors provide new estimates of the return to job seniority using a dataset similar to that employed in Joseph Altonji and Robert Shakotko, “Do Wages Rise with Job Seniority?†Review of Economic Studies (1987) and Robert Topel, “Specific Capital, Mobility, and Wages,â€...