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Nonlinearity is an important consideration in many problems of finance and economics, such as pricing securities, computing equilibrium, and conducting structural estimations. We extend the transform analysis in Duffie, Pan, and Singleton (2000) by providing analytical treatment of a general...
Persistent link: https://www.econbiz.de/10013127979
Ashenfelter and Krueger's (1993) within-twin, measurement-error- corrected estimate of the return to schooling is about 13-16 percent. If their estimate is unbiased, then their results imply considerable downward measurement error bias in uncorrected within-twin estimates of the return to...
Persistent link: https://www.econbiz.de/10013224439
Instrumental Variables (IV) estimates tend to be biased in the same direction as Ordinary Least Squares (OLS) in finite samples if the instruments are weak. To address this problem we propose a new IV estimator which we call Split Sample Instrumental Variables (SSIV). SSIV works as follows: we...
Persistent link: https://www.econbiz.de/10013225846
This paper considers the problem of assessing the distributional consequences of a treatment on some outcome variable of interest when treatment intake is (possibly) non-randomized but there is a binary instrument available for the researcher. Such scenario is common in observational studies and...
Persistent link: https://www.econbiz.de/10013238969
an application based on omitted ability bias in estimation of wage regressions. The National Longitudinal Survey Young …
Persistent link: https://www.econbiz.de/10013218741
retraining, much of it specific to the firm, results also in steeper wage trajectories, due to growth of skills in the firm. We … explore this insight more thoroughly by a detailed use of micro-data for the two countries: We measure wage profiles and … policies in recruitment and training. We find that the steeper tenure-wage slopes and lower turnover place this sample closer …
Persistent link: https://www.econbiz.de/10012756884
High- and low-wage occupations are expanding rapidly relative to middle-wage occupations in both the U.S. and the E …
Persistent link: https://www.econbiz.de/10012757995
assess the contribution of wage differences to how migrants sort themselves across destination countries …
Persistent link: https://www.econbiz.de/10012759515
This paper considers the factors responsible for differences with age in estimates of the wage compensation an … status or quality of life and anticipated longevity threats lead to significant differences in the estimated wage …/risk tradeoffs. We describe how extensions to the specification of hedonic wage models, including measures for quality of life and …
Persistent link: https://www.econbiz.de/10012759625
parameter values, as many as one-fourth of existing quot;good jobsquot; (those with above average wage) may be destroyed in a …
Persistent link: https://www.econbiz.de/10012760076