In this paper we develop and implement a method for bounding the extent to which labor market discrimination can account for racial wage differentials. The method is based on a two-sided, search-matching model that formally accounts for unobserved heterogeneity and unobserved offered wages. We...

The authors examine the effect of the Medicaid program on the labor supply and welfare participation decisions of female heads of family. A key contribution is the development of a family-specific proxy for the valuation of Medicaid benefits. The authors find that Medicaid has strong and...

The authors modify the basic self-sele ction model for the effects ofeducation, training, unions, and other activities on wages, by including "heterogeneity of rewards" to the activity-i.e., diffe rences across individuals in the rate of return to the activity. The authors sho w that such...