This paper uses direct measures of literacy to examine the influence of cognitive and unobserved skills on earnings. We find that cognitive skills contribute significantly to earnings and that their inclusion in earnings equations reduces the measured impact of schooling. The impact of literacy on earnings does not vary across quantiles of the earnings distribution; schooling and literacy do no...

Analysts often provide forecasts of one-year ahead earnings, earnings two-year ahead, as well as long-term earnings growth rates. In our attempts to understand the properties of these contemporaneous multi-period earnings forecasts, we begin by examining whether analysts’ earnings forecasts can be described using the linear information dynamics (LID). We find that LID is an appropriate descript...

Groups that are often treated separately in studies of earnings inequality -women and minorities -are included in a general decomposition of sources of such disparity among fulltimelfull-year labor force participants. In order to consider several possible sources of earnings inequality, a new decomposition is developed that allows semilog earnings models to be decomposed into inequality factors...

The effective tax on earnings embodied in the Social Security retirement earnings test has been as high as 50 percent. Despite numerous empirical studies, there is surprisingly little agreement about whether the earnings test affects male labor supply. In this paper, we provide a comprehensive analysis of the earnings test for men using longitudinal administrative earnings data and more commonl...

This study investigates the relationship between earnings management and equity liquidity, positing that as incentives arise for the manipulation of firm performance through earnings management (due partly to conflicts of interest between firm insiders and outsiders), greater earnings management may signal higher adverse selection costs. If earnings manipulation reveals aggressive accounting pr...

This paper projects lifetime Social Security earnings until retirement using data from the Survey of Income and Program Participation (SIPP) matched to Social Security records of annual earnings from 1951 through 1993. We first develop, estimate and test gender-specific multiple regression models of ten-year earnings intervals using the matched 1984 SIPP panel. We find strong relationships pred...

With increasing emphasis being placed on corporate social responsibility, the number of companies furnishing responsibility (CSR) reports is increasing. This study investigates impact abnormal positive tone in CSR analysts’ earnings forecast bias. The textual analysis Chinese listed between 2006 and 2016 reveals that an significantly positively relates to optimistic bias forecasts. effect prono...