Labor Economics
Bonn Graduate School of Economics
SS 2000
Magnus Lofstrom
Klaus F. Zimmermann
Students interested in the below described graduate level course in labor economics
should attend the meeting on Friday March 31 at 13:00 to discuss the course, proposed
syllabus and meeting times, in IZA's seminar room.
The principal objective of this course is to introduce students with research interests in
labor economics to several key theoretical and empirical issues in the field. The course
will focus on 7 general topics: labor demand, labor supply, human capital, wage setting
institutions, labor mobility, unemployment and earnings inequality.
The course will be divided into 2 parts. The first part consists of 8 lectures covering the
topics listed above. Each lecture will be for 3 hours. Students are expected to have done
the readings in advance and to be active, i.e. ask questions and to participate in
discussions of the topics, during lectures. The date and time of the lectures are listed by
the respective topic.
The second part of the course consists of sessions led by the students. In each session
students will be assigned to present a review and critique of the respective literature on
specific topics. The topics will be decided on early in the course and may be within the
proposed general topic of Earnings Inequality. All participants will discuss the
presentations. A partial list of references on this topic can be found below. The
presentations will take place July 10 and 11.
Prerequisites:
Sound understanding of microeconomics and econometrics.
Text:
Ehrenberg, Ronald G. and Smith, Robert S. (1996), Modern Labor Economics: Theory
and Public Policy, Sixth edition, Addison-Wesley: New York.
This is an introductory text in labor economics. The course will extensively use journal
articles to supplement the topics covered in lectures. It is highly recommended that
students read the assigned chapters before the course starts.
1
Examination:
The examination for the course consists of your presentations and participation in the
discussions in the course. Furthermore, you have to write a short term paper (10-15 pages
in English) on one of the topics discussed in the lectures. The paper has to be written
individually and must be submitted at the end of the semester. There will also be a
written in-class exam at the end of the first part of the course.
I)
Labor Demand (2 lectures: May 16, 9:00-12:00 and May 19, 13:00-16:00)
i)
ii)
iii)
Marginal revenue product/ Firms’ demand for labor
Labor demand elasticities
Quasi fixed labor costs
TEXT BOOK:
Ehrenberg and Smith: Chapters 1, 2, 3, 4 and 5
ARTICLES:
Abraham, Katharine G. and Taylor, Susan K. (1996), “Firms’ Use of Outside
Contractors: Theory and Evidence,” Journal of Labor Economics, 14(3), pp. 394-424.
Boal, William M. and Ransom, Michael R. (1997), “Monopsony in the Labor Market,”,
Journal of Economic Literature; 35(1), pp. 86-112.
Hamermesh, Daniel (1993), Labor Demand, Chapters 2 and 3. (Princeton: Princeton
University Press)
Hamermesh, Daniel (1986) in Handbook of Labor Economics, Chapter 8, Volume 1.
Lazear, Edward (1990), “Job Security Provisions and Employment,” Quarterly Journal
of Economics, 105(3), pp. 699-726.
Oi, Walter (1962), "Labor as a Quasi-fixed Factor," Journal of Political Economy, pp.
538-55.
Trejo, Stephen J. (1991) “The Effects of Overtime Pay Regulation on Worker
Compensation,” American Economic Review, 81(49), pp. 719-740.
II)
Labor Supply (1 lecture: May 26, 9:00-12:00)
i)
ii)
The decision to work
Compensating wage differentials
TEXT BOOK: Ehrenberg and Smith: Chapters 6 and 8
2
ARTICLES:
Overview:
Blundell, Richard and Macurdy, Thomas (1999) “Labor Supply: A Review of Alternative
Approaches,” in Handbook of Labor Economics, Chapter 27, Volume 3.
The Basic Static Model:
Killingsworth, Mark (1983), Labor Supply, (Cambridge: Cambridge University Press)
Chapters 1 and 2.
Ben-Porath, Yoram (1973), "Labor Force Participation Rates and the Supply of Labor",
Journal of Political Economy (May/June).
Responsiveness of Labor Supply:
Heckman, James (1974), "Shadow Prices, Market Wages and Labor Supply",
Econometrica (July).
Heckman, James (1979), "Sample Selection Bias as a Specification Error With an
Application to the Estimation of Labor Supply Functions", in James Smith (Ed.) Female
Labor Supply, (Princeton: Princeton University Press).
Moffitt, Robert (1984), "The Estimation of a Joint Wage-Hours Labor Supply Model",
Journal of Labor Economics, (October).
Moffitt, Robert (1992), "Incentive Effects of the U.S. Welfare System: A Review",
Journal of Economic Literature, (March).
Mroz, Thomas (1987), "The Sensitivity of an Empirical Model of Married Women's
Hours of Work to Economic and Statistical Assumptions", Econometrica, (July).
Dynamic Models and Models of Intertemporal Substitution:
Altonji, Joseph (1986), "Intertemporal Substitution in Labor Supply: Evidence from
Micro Data", Journal of Political Economy, (June), Supplement.
Heckman, James (1969), "Life Cycle Consumption and Labor Supply: An Explanation of
the Relationship between Income and Consumption Over the Life Cycle", American
Economic Review (December).
Heckman, James and Thomas MaCurdy (1980), "A Life Cycle Model of Female Labor
Supply", Review of Economic Studies, (January).
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Lucas. Robert E. and Leonard Rapping (1969), "Real Wages, Employment, and
Inflation", Journal of Political Economy, (October).
MaCurdy, Thomas (1981), "An Empirical Model of Labor Supply in a Life Cycle
Setting", Journal of Political Economy (December).
Compensating Wage Differentials:
Hamermesh, Daniel (1997) “Immigration and the Quality of Jobs”, NBER Working
Paper No. 6195.
Rosen, Sherwin (1974) “Hedonic Prices and Implicit Markets,” Journal of Political
Economy (January/February).
Rosen, Sherwin (1986) “The Theory of Equalizing Differences,” in Handbook of Labor
Economics, Chapter 12, Volume 1.
Viscusi, Kip W (1993) “The Value of Risks to Life and Health,” Journal of Economic
Literature, (December).
III)
Investments in Human Capital (1 lecture: June 2, 9:00-12:00)
i)
ii)
Education and training/Returns to Education
Human capital theory and signaling
TEXT BOOK: Ehrenberg and Smith: Chapter 9
ARTICLES:
Education and Training:
Freeman, Richard B (1986) “The Demand for Education” in Handbook of Labor
Economics, Chapter 6, Volume 1.
Returns to Education:
Angrist, Joshua D and Krueger, Alan B (1999) “Empirical Strategies in Labor
Economics,” in Handbook of Labor Economics, Chapter 23, Volume 3.
Card, David (1999) “The Causal Effect of Education on Earnings” in Handbook of Labor
Economics, Chapter 30, Volume 3.
Methods – Heckman Selectivity Correction:
Griliches, Zvi (1977), "Estimating the Returns to Schooling: Some Econometric
Problems", Econometrica, (January) pp. 1-22.
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Heckman, James (1979), "Sample Selection Bias as a Specification Error",
Econometrica, 47, pp. 153-161.
Mincer, Jacob (1974), Schooling, Experience and Earnings, New York: Columbia
University Press for NBER.
Willis, R.J. and S. Rosen (1979), "Education and Self-Selection", Journal of Political
Economy, (Supplement, October), pp. S7-S36
Methods – Instrumental Variables:
Angrist, Joshua D. and Alan B. Krueger (1991), "Does Compulsory School Attendance
Affect Schooling and Earnings?", Quarterly Journal of Economics, 56, #4, pp. 979-1014.
Angrist, Joshua D. and Alan B. Krueger (1992), "The Effect of Age at School Entry on
Educational Attainment: An Application of Instrumental Variables with Moments from
Two Samples", Journal of the American Statistical Association, 87, (June) pp. 328-336.
Angrist, Joshua D. and Alan B. Krueger (1994), "Why do World War II Veterans Earn
More than Nonveterans?", Journal of Labor Economics, (January) pp. 74-97.
Ashenfelter, Orley and Alan Krueger (1994), "Estimates of the Economic Return to
Schooling from a New Sample of Twins", American Economic Review, (December).
Bound, John, David A. Jaeger and Regina M. Baker (1995), "The Cure Can be Worse
than the Disease: A Cautionary Tale Regarding Instrumental Variables", Journal of the
American Statistical Association, (June).
Card, David (1993), "Using Geographic Variation in College Proximity to Estimate the
Return to Schooling", NBER Working Paper 4483.
Kane, Thomas J. and Cecilia E. Rouse (1995), "Labor Market Returns to Two- and FourYear College", American Economic Review (June).
Staiger, Douglas and James H. Stock (1997), "Instrumental Variables Regression with
Weak Instruments", Econometrica (May) pp. 557-86
Methods – Fixed Effects:
Altonji, Joseph and Thomas Dunn, (1996), "The Effects of Family Characteristics on the
Return to Education", Review of Economics and Statistics, (November).
Angrist, Joshua and Whitney Newey (1991), "Over-identification Tests in Earnings
Functions with Fixed Effects", Journal of Business and Economic Statistics (July).
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Ashenfelter, Orley and David Zimmerman (1993), "Estimates of the Returns to Schooling
from Sibling Data: Fathers, Sons and Brothers", NBER Working Paper # 4491.
Ashenfelter, Orley and Alan Krueger (1994), "Estimates of the Economic Return to
Schooling from a New Sample of Twins", American Economic Review (December).
(Note: This paper uses both instrumental variables and fixed effects.)
Light, Audrey (1995), "The Effects of Interrupted Schooling on Wages", Journal of
Human Resources (Summer).
Human capital theory and signaling:
Review of the Models:
Becker, Gary (1975), Human Capital, New York: National Bureau of Economic
Research.
Spence, Michael (1973), "Job Market Signalling", Quarterly Journal of Economics.
Stiglitz, Joseph (1975), "The Theory of Screening, Education, and the Distribution of
Income", American Economic Review.
Empirical Findings:
Altonji, Joseph (1995), "The Effects of High School Curriculum on Education and Labor
Market Outcomes", Journal of Human Resources, (Summer).
Altonji, Joseph and Charles R. Pierret (1996), "Employer Learning and the Signaling
Value of Education", NBER Working Paper # 5438.
Farber, Henry S. and Robert Gibbons (1995), "Learning and Wage Dynamics", Quarterly
Journal of Economics (November).
Gibbons, Robert and Lawrence F. Katz (1991), "Layoffs and Lemons", Journal of Labor
Economics, 9, #4, pp. 351-380.
Lang, Kevin and David Kropp (1986), "Human Capital versus Sorting: The Effects of
Compulsory Attendance Laws", Quarterly Journal of Economics, 101, #3, pp. 609-624.
Weiss, Andrew (1988), "High School Graduation, Performance, and Wages", Journal of
Political Economy (96:4).
IV)
Wage Setting Institutions (1 lecture: June 6, 9:00-12:00)
i)
ii)
Unions
Minimum wage
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TEXT BOOK: Ehrenberg and Smith: Chapter 13
ARTICLES:
Unions:
Ashenfelter, Orley and Johnson, George E. (1969) “Bargaining Theory, Trade Unions,
and Industrial Strike Activity,” American Economic Review (March) pp. 35-49
Allen, Steven G. (1984) “Unionized Construction Workers Are More Productive,”
Quarterly Journal of Economics (May) pp. 251-74.
Betts, Julian and Odgers, Cameron (1997) "Do Unions Reduce Investment?", Industrial
and Labor Relations Review, (51:1), pp. 18-36.
Brown, Charles and Medoff, James. (1978) “Trade Unions in the Production Process,”
Journal of Political Economy (June) pp.355-78.
Farber, Henry S. (1986) “The Analysis of Union Behavior,” in Handbook of Labor
Economics, Chapter 18, Volume 1.
Minimum Wage:
Brown, Charles, Curtis Gilroy, and Andrew Kohen (1982), "The Effect of the Minimum
Wage on Employment and Unemployment", Journal of Economic Literature, (June).
Card, David (1992), "Do Minimum Wages Reduce Employment? A Case Study of
California, 1987-89", Industrial and Labor Relations Review, (October).
Card, David and Alan B. Krueger (1994), "Minimum Wages and Employment - A Case
Study of the Fast Food Industry in New Jersey and Pennsylvania", American Economic
Review (September).
Card, David and Alan B. Krueger (1995), Myth and Measurement : The New Economics
of the Minimum Wage, (Princeton, N.J.: Princeton University Press).
Card, David, Lawrence Katz and Alan Krueger (1994), "Comment on David Neumark
and William Wascher, 'Employment Effects of Minimum and Subminimum Wages:
Panel Data on State Minimum Wage Laws'", Industrial and Labor Relations Review,
(April).
Katz, Lawrence and Alan B. Krueger (1992), "The Effect of the Minimum Wage on the
Fast Food Industry", Industrial and Labor Relations Review, (October).
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Kennan, John (1995), "The Elusive Effects of Minimum Wages", Journal of Economic
Literature (December).
Neumark, David and William Wascher (1994), "Employment Effects of Minimum and
Subminimum Wages: Reply to Card, Katz, and Krueger",.Industrial and Labor Relations
Review, (April).
Neumark, David and William Wascher (1992), "Employment Effects of Minimum and
Subminimum Wages: Panel Data on State Minimum Wage Laws", Industrial and Labor
Relations Review, (October).
Neumark, David and William Wascher (1995), "Minimum-Wage Effects On School And
Work Transitions Of Teenagers", American Economic Review (May).
Neumark, David and William Wascher (1995), "The Effect Of New Jersey's Minimum
Wage Increase On Fast-Food Employment: A Re-Evaluation Using Payroll Records",
NBER Working Paper #5224.
V)
Labor Mobility (1 lecture: June 9, 9:00-12:00)
i)
ii)
Internal mobility
Economics of immigration
TEXT BOOK: Ehrenberg and Smith: Chapter 10
ARTICLES:
Betts, Julian R. and Lofstrom, Magnus. (2000) The Educational Attainment of
Immigrants: Trends and Implications. in George J. Borjas (ed) Issues in the Economics of
Immigration. University of Chicago Press.
Borjas, George J. (1985) Assimilation Changes in Cohort Quality and the Earnings of
Immigrants. Journal of Labor Economics, 4:463-89.
George Borjas (1987) "Self-Selection and the Earnings of Immigrants," American
Economic Review.
Borjas, George J. (1994) The Economics of Immigration. Journal of Economic
Literature 32:1667-717.
Card, David (1990) “The Impact of the Mariel Boatlift on the Miami Labor Market,”
Industrial and Labor Relations Review, 4(2) pp. 168-192.
Carliner, Geoffrey. (1980) Wages, Earnings and Hours of First, Second, and Third
Generation American Males. Economic Inquiry 1:87-102.
Chiswick, Barry R. (1978) The Effect of Americanization on the Earnings of Foreign-
8
born Men. Journal of Political Economy 5:897-921.
Friedberg, Rachel and Hunt, Jennifer (1995) “The Impact of Immigrants on Host Country
Wages, Employment and Growth,” Journal of Economic Perspectives, 9(2) pp. 23-44.
Mincer, Jacob (1978) "Family Migration Decisions," Journal of Political Economy.
Roy, Andrew D (1951) “Some Thoughts on the Distribution of Earnings,” Oxford Econ.
Pap. N.S. (June), 3, pp. 135-46.
VI)
Unemployment (1 lecture: June 13, 9:00-12:00)
i)
ii)
The microeconomics of unemployment
The macroeconomics of unemployment
TEXT BOOK: Ehrenberg and Smith: Chapter 15
ARTICLES:
Unemployment Theories - Micro
Efficiency Wages:
Carmichael, H. Lorne (1990), "Efficiency Wage Models of Unemployment - One View",
Economic Inquiry, (April) pp. 269-295.
Lang, Kevin and Shulamit Kahn (1990), "Efficiency Wage Models of Unemployment - A
Second View", Economic Inquiry, (April) pp. 296-306.
The Shirking Model:
Carmichael, H. Lorne (1985), "Can Efficiency Wage Unemployment be Involuntary?",
American Economic Review, 75, pp. 1213-1214.
Macleod, Bentley and James Malcolmsom (1989), "Implicit Contracts, Incentive
Compatibility and Involuntary Unemployment", Econometrica, 57, pp. 312-322.
MacLeod, Bentley and James M. Malcolmson (1988), "Reputation and Hierarchy in
Dynamic Models of Employment", Journal of Political Economy, 96, #4.
Shapiro, Carl and Joseph Stiglitz (1984), "Equilibrium Unemployment as a Worker
Discipline Device", American Economic Review (June) pp. 433-444.
Shapiro, Carl and Joseph Stiglitz (1985), "Can Efficiency Wage Unemployment be
Involuntary: Reply", American Economic Review, 75, pp. 1215-1217.
Adverse Selection:
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Weiss, A. (1980), "Job Queues and Layoffs in Labor Markets with Flexible Wages",
Journal of Political Economy, (June) pp. 526-538.
Turnover Costs:
Salop, Steven C. (1979), "A Model of the Natural Rate of Unemployment", American
Economic Review, (March) pp. 117-125.
Sociological Explanations:
Akerlof, George A. (1982), "Labor Contracts as Partial Gift Exchange", Quarterly
Journal of Economics, 47, November, pp. 543-569.
Akerlof, George A. (1984), "Gift-Exchange and Efficiency Wage Theory: Four Views",
American Economic Review, 74, May, pp. 79-83.
Empirical Evidence:
Blackburn, McKinley and David Neumark (1992), "Unobserved Ability, Efficiency
Wages, and Interindustry Wage Differentials", Quarterly Journal of Economics, 107, #4,
pp. 1421-1436.
Cappelli, Peter and Keith Chauvin (1991), "An Interplant Test of the Efficiency Wage
Hypothesis", Quarterly Journal of Economics, 106, #3, pp. 769-787.
Gibbons, Robert and Lawrence Katz (1992), "Does Unmeasured Ability Explain InterIndustry Wage Differentials?", Review of Economic Studies, (July) pp. 515-535.
Groshen, Erica L. and Alan B. Krueger (1990), "The Structure and Supervision of Pay in
Hospitals", Industrial and Labor Relations Review, 43, #3, Special Issue, pp. S134-S146.
Krueger, Alan B. and Lawrence H. Summers (1988), "Efficiency Wages and the InterIndustry Wage Structure", Econometrica, 56, #2, pp. 259-293.
Unemployment Theories - Macro
Insider-Outsider/Hysteresis:
Blanchard, Olivier J. and Lawrence H. Summers (1986), "Hysteresis and the European
Unemployment Problem", in Stanley Fischer (Ed.), NBER Macroeconomics Annual
1986, Cambridge: MIT Press, pp. 15-77.
Lindbeck, Assar and Dennis J. Snower (1988), "Cooperation, Harassment, and
Involuntary Unemployment: An Insider-Outsider Approach", American Economic
Review 78, #1, pp. 167-188.
10
Sectoral Shifts:
Abraham, Katherine G. and Lawrence F. Katz (1986), "Cyclical Unemployment: Sectoral
Shifts or Aggregate Disturbances?", Journal of Political Economy (June) pp. 507-522.
Brainard, S. Lael and David M. Cutler (1993), "Sectoral Shifts and Cyclical
Unemployment Reconsidered", Quarterly Journal of Economics (February) pp. 219-243.
Lilien, David M. (1982), "Sectoral Shifts and Cyclical Unemployment", Journal of
Political Economy (August) pp. 777-793.
Murphy, Kevin M. and Robert H. Topel (1987), "The Evolution of Unemployment in the
United States", in NBER Macroeconomics Annual 2, pp. 11-58.
VII)
Inequality of Earnings (1 lecture: June 14, 9:00-12:00)
i)
ii)
Causes and trends
Policy
TEXT BOOK: Ehrenberg and Smith: Chapter 14
ARTICLES:
Blackburn, McKinley L., Bloom, David E. and Freeman, Richard B. "Changes in
Earnings Differentials in the 1980's: Concordance, Converges, Causes and
Consequences," National Bureau of Economic Research Working Paper, No. 3901,
November 1991.
Bound, John, and George Johnson “Changes in the Structure of Wages in the 1980s: An
Evaluation of Alternative Explanations,” American Economic Review, 1992, June, 371392.
Davis, S. “Cross-Country Patterns of Change in Relative Wages,” NBER
Macroeconomics Annual, 1992, Cambridge: MIT Press, 239-300.
DiNardo, John E., and Jorn-Steffen Pischke “The Returns to Computer Use Revisited:
Have Pencils Changed the Wage Structure Too?”, Quarterly Journal of Economics, 1997,
February, 291-303.
Edin, Per-Anders, and Bertil Holmlund (1995) “The Swedish Wage Structure: The Rise
and Fall of Solidarity Wage Policy?” in Richard B. Freeman and Lawrence F. Katz (eds),
Differences and Changes in Wage Structures, Chicago: University of Chicago Press, 30744.
11
Freeman, Richard, and Lawrence Katz (1994) “Rising Wage Inequality: The United
States vs. Other Advanced Countries,” in Richard Freeman (ed.), Working Under
Different Rules, New York: Russell Sage Foundation.
Gottschalk, Peter, and Timothy Smeeding (1996) “Cross-National Comparisons of
Earnings and Income Inequality,” Journal of Economic Literature (June) pp. 633-687.
Snower, Dennis J. (1999) "Causes of Changing Earnings Inequality," IZA Discussion
Paper No. 29, (January).
Johnson, George E. (1997) “Changes in Earnings Inequality: The Role of Demand
Shifts,” Journal of Economic Perspectives, (Spring) 41-54.
Katz, Lawrence F and Murphy, Kevin M. (1992) "Changes in Relative Wages, 19631987: Supply and Demand Factors," Quarterly Journal of Economics, (February) pp. 3578.
Katz, Lawrence, G. Loveman, and D. Blanchflower (1995) “A Comparison of Changes in
the Structure of Wages in Four OECD Countries,” in Katz and Freeman (eds.),
Differences and Changes in Wage Structures, Chicago: University of Chicago Press.
12
Reference List (partial) for proposed student seminar topic Earnings Inequality:
Berger, Mark “The Effect of Cohort Size on Earnings Growth: A Reexamination of the
Evidence,” Journal of Political Economy, 1985, June, 93, 201-34.
Berman, Ely, John Bound, and Zvi Griliches “Changes in the Demand for Skilled Labor
with U.S. Manufacturing Industries: Evidence from the Annual survey of
Manufacturing,” Quarterly Journal of Economics, 1994, May, 2, 109.
Blackburn, McKinley L., Bloom, David E. and Freeman, Richard B. "Changes in
Earnings Differentials in the 1980's: Concordance, Converges, Causes and
Consequences," National Bureau of Economic Research Working Paper, No.
3901, November 1991.
Bound, John, and George Johnson “Changes in the Structure of Wages in the
1980s: An Evaluation of Alternative Explanations,” American Economic Review,
1992, June, 371-392.
Davis, S. “Cross-Country Patterns of Change in Relative Wages,” NBER
Macroeconomics Annual, 1992, Cambridge: MIT Press, 239-300.
DiNardo, John E., and Jorn-Steffen Pischke “The Returns to Computer Use
Revisited: Have Pencils Changed the Wage Structure Too?”, Quarterly Journal of
Economics, 1997, February, 291-303.
DiNardo, John, Nicole M. Fortin, and Thomas Lemieux “Labor Market
Institutions and the Distribution of Wages, 1973-1992: A Semiparametric
Approach,” Econometrica, September, 1996, 65, 1001-44.
Edin, Per-Anders, and Bertil Holmlund “The Swedish Wage Structure: The Rise
and Fall of Solidarity Wage Policy?” in Richard B. Freeman and Lawrence F.
Katz (eds), Differences and Changes in Wage Structures, Chicago: University of
Chicago Press, 1995 , 307-44.
Freeman, Richard B. “Unionism and the Dispersion of Wages,” Industrial and Labor
Relations Review, 1980, October, 34, 3-23.
Freeman, Richard “Evaluating the European View that the United States has No
Unemployment Problem,” American Economic Review, Papers and Proceedings,
1988, May, 78, 294-299.
Freeman, Richard B. "How Much has De-Unionisation Contributed to the Rise in
Earnings Inequality?," in S. Danziger and P. Gottschalk, Uneven Tides: Rising
Inequality in America, 1993, New York: Russell Sage Foundation, 99-164.
Freeman, Richard B. “Are Your Wages Set in Beijing?” Journal of Economic
13
Perspectives, 1995, 9(3), Summer, 15-32.
Freeman, Richard, and Lawrence Katz “Rising Wage Inequality: The United States vs.
Other Advanced Countries,” in Richard Freeman (ed.), Working Under Different
Rules, New York: Russell Sage Foundation, 1994.
Gottschalk, Peter “Inequality, income Growth, and Mobility: The Basic Facts,” Journal of
Economic Perspectives, 1997, 11(2), Spring, 21-40.
Gottschalk, Peter, and Robert Moffitt “The Growth of Earnings Instability in the U.S.
Labor Market,” Brookings Papers on Economic Activity, 1994, 2, 217-72.
Gottschalk, Peter, and Timothy Smeeding “Cross-National Comparisons of Earnings and
Income Inequality,” Journal of Economic Literature, 1996, 35, June, 633-687.
Johnson, George E. “Changes in Earnings Inequality: The Role of Demand Shifts,”
Journal of Economic Perspectives, 1997, 11(2), Spring, 41-54.
Katz, Harry C. “The Decentralization of Collective Bargaining: A Literature Review and
Comparative Analysis,” Industrial and Labor Relations Review, 1993, 47 (1), 322.
Katz, Lawrence F and Murphy, Kevin M. "Changes in Relative Wages, 1963-1987:
Supply and Demand Factors," The Quarterly Journal of Economics, February
1992, 35-78.
Katz, Lawrence, G. Loveman, and D. Blanchflower “A Comparison of Changes in the
Structure of Wages in Four OECD Countries,” in Katz and Freeman (eds.),
Differences and Changes in Wage Structures, Chicago: University of Chicago
Press, 1995.
Katz, Lawrence, and Anna Ravenga “Changes in the Structure of Wages, the U.S. vs.
Japan,” Journal of Japanese and International Economics, 1989, III.
Krueger, Alan “How Computers have Changed the Wage Structure: Evidence from
Microdata,” Quarterly Journal of Economics, 1993, 108, 33-60.
Krugman, Paul "And Now for Something Completely Different: An Alternative Model of
Trade, Education and Inequality," in eds. Robert Feenstra The Impact of
International Trade on Wages, University of Chicago Press, 2000.
Levy, Frank, and Richard J. Murnane “U.S. Earnings Level and Earnings inequality: A
Review of Recent Trends and Proposed Explanations,” Journal of Economic
Literature, 1992, Sept, 30(3), 1333-81.
Lindbeck, Assar, and Dennis J. Snower “Wage Setting, Unemployment, and Insider-
14
Outsider Relations,” American Economic Review, Papers and Proceedings, 1986,
76(2), 235-239.
Lindbeck, Assar, and Dennis J. Snower “Reorganization of Firms and Labor Market
Inequality,” American Economic Review, 1996, May, 86(2), 315-321.
Machin, Stephen “Changes in the Relative Demand for Skills,” in Acquiring Skills, ed.
by Alison Booth and Dennis J. Snower, Cambridge: Cambridge University Press,
1996, 127-146.
Machin, Stephen, and Alan Manning “Minimum Wages, Wage Dispersion and
Employment: Evidence from the UK Wages Councils,” Industrial and Labor
Relations Review, 1994, 47, 319-329.
Mincer, Jacob “Human Capital Responses to Technical Change,” NBER Working Paper
No 3207, 1989.
Mincer, Jacob “Human Capital, Technology, and the Wage Structure: What Do the Time
Series Show?” NBER Working Paper No 3581, 1991.
Murphy, Kevin and Welch, Finis. "Industrial Change and the Rising Importance of Skill,"
in S. Danziger and P. Gottschalk, Uneven Tides: Rising Inequality in America,
1993, New York: Russell Sage Foundation, 101-132.
Murnane, Richard, John Willet, and Frank Levy “The Growing Importance of Cognitive
Skills in Wage Determination,” Review of Economics and Statistics, 1995, 77(2),
251-266.
Murphy, Kevin, and Finis Welch “Industrial Change and the Rising Importance of Skill,”
in Peter Gottschalk and Sheldon Danziger (eds.), Uneven Tides, New York:
Russell Sage Foundation, 1993, 101-132.
Nickell, Stephen, and Brian Bell “The Collapse in Demand for the Unskilled and
Unemployment Across the OECD,” Oxford Review of Economic Policy, 1995,
11(1), 40-62.
Nickell, Stephen, and Brian Bell “Would Cutting Payroll Taxes on the Unskilled Have a
Significant Impact on Unemployment” in Unemployment Policy, ed. by Dennis J.
Snower and Guillermo de la Dehesa, Cambridge: Cambridge University Press,
1996, 296-328.
OECD “Earnings Inequality, Low-Paid Employment and Earnings Mobility,”
Employment Outlook, 1998, July, ch. 3, 59-108.
15
Snower, Dennis J. "Converting Unemployment Benefits into Employment Subsidies,"
American Economic Review, 1994, 84(2), 65-70.
Snower, Dennis J. "Causes of Changing Earnings Inequality," IZA Discussion Paper No.
29, January 1999.
Topel, Robert H. “Regional Labor Markets and the Determinants of Wage Inequality,”
American Economic Review, Papers and Proceedings, 1993, May, 83, 110-15.
16