This paper extends the method of local instrumental variables developed by Heckman and Vytlacil (1999, 2001, 2005) to the estimation of not only means, but also distributions of potential outcomes. The newly developed method is illustrated by applying it to changes in college enrollment and wage...

In this paper we examine the importance of heterogeneity and self-selection into schooling for the study of inequality. Changes in inequality over time are a combination of price changes, selection bias and composition effects. To distinguish them, we estimate a semiparametric selection model...

The paper considers a two-country model of overlapping generations economies with intergenerational transfers carried out in the form of bequest and investment in human capital. We examine in competitive equilibrium the optimal provision of education with and without capital markets integration....

The research explores the effect of industrialization on human capital formation. Exploiting exogenous regional variations in the adoption of steam engines across France, the study establishes that, in contrast to conventional wisdom that views early industrialization as a predominantly...

The paper studies the determinants of income distribution and growth in an overlapping generations economy with heterogenous households. Our framework has the following main features: (1) heterogeneity of consumers with respect to wealth and parental human capital; (2) intergenerational...

The research explores the effect of industrialization on human capital formation. Exploiting exogenous regional variations in the adoption of steam engines across France, the study establishes that in contrast to conventional wisdom that views early industrialization as a predominantly...

The research provides the first empirical examination of the hypothesized effect of industrialization on the fertility decline. Exploiting exogenous source of regional variations in the adoption of steam engines across France, the study establishes that industrialization was a major catalyst in...

This research establishes the influence of linguistic traits on human behavior. Exploiting variations in the languages spoken by children of migrants with identical ancestral countries of origin, the analysis indicates that the presence of periphrastic future tense, and its association with...

This research establishes empirically that existing cross-language variations in the structure of the future tense and the presence of grammatical gender affected human capital accumulation. Exploiting variations in the dominant languages among migrants from the same countries of origin, the...

This research explores the effect of industrialization on the process of development. In contrast to conventional wisdom that views industrial development as a catalyst for economic growth, the study establishes that while the adoption of industrial technology was conducive to economic...