We analyze the long-term workforce composition when quality of mentoring available to majority and minority juniors depends on their representation in workforce. A with at least 50 percent workers invariably converges one where is overrepresented relative population. To maximize welfare, persistent interventions, such as group-specific fellowships, are often needed, optimal may include lower in...

We estimate long-run intergenerational persistence in human capital using information on outcomes for the extended family: dynasty. A dataset including entire Swedish population, linking four generations, allows us to identify parents’ siblings and cousins, their spouses, spouses’ siblings. Using various measures, we show that traditional parent-child estimates underestimate by at least one-thi...

A principal owns a firm, hires an agent of uncertain productivity, and designs dynamic policy for evaluating his performance. The observes ongoing evaluations decides when to quit. When not quitting, the is paid wage that linear in expected productivity; claims residual After players secure fixed outside options. I show equilibrium Pareto efficient. For broad class performance technologies, det...

We study the geographic incidence and efficiency of an income tax by estimating a spatial equilibrium model with heterogeneous workers. The US shifts households out high-productivity cities, leading to locational inefficiency 0.25 percent output. Removing distortions increases inequality because more educated are mobile own larger shares land. Flattening schedule, or introducing cost-of-living ...

On Human Capital Formation with Exit Options: Comment and New Results Katz and Rapoport (2005) conclude that with linear production technology and the possibility of unilateral migration, region-specific shocks may increase the average level of education. Previously, Poutvaara (2000) derived a corresponding result with Cobb-Douglas technology and migration which may go in both directions. This ...

Regression and neural network models of wage determination are constructed where the explanatory variables include detailed information about skills. People skills, strategic skills, and IT skills all carry strong and significant wage premia; problemsolving skills (surprisingly) and physical skills (less surprisingly) do not. In contrast to the impact of school curriculum on subsequent earnings...

I thank Claire Black and Wei-Jang Huang for assistance in preparing this paper. I appreciate the comments of George Erickcek on a preliminary version of this paper. This paper was previously presented on November 20, 2009 at the 57th Annual Economic Outlook Conference of the Research Seminar in Quantitative Economics (RSQE) at the University of Michigan. I appreciate comments and questions for ...

We apply the comparative techniques originated by Wolpin, K.I. (1977, Education and screening, American Economic Review, 67, 949–958) and Psacharopoulos (1979, On the weak versus the strong version of the screening hypothesis, Economics Letters, 4, 181–185) to discriminate between the ‘weak’ and ‘strong’ screening hypotheses. Controlling for sample selection, we find evidence for weak but not s...

We quantify the importance of imperfect competition in US labor market by estimating size rents earned American firms and workers. construct a matched employer-employee panel dataset combining universe business worker tax records for period 2001–2015. Using this data, we identify estimate an equilibrium model with two-sided heterogeneity where workers view as substitutes because heterogeneous p...

The high-tech sector is concentrated in a small number of cities. ten largest clusters computer science, semiconductors, and biology account for 69 percent, 77 59 percent all US inventors, respectively. Using longitudinal data on 109,846 I find that geographical agglomeration results significant productivity gains. When an inventor moves to city with large cluster inventors the same field, she ...