Economics 752: Labor Economics II Fall 2010 When and Where: Mondays and Wednesdays, 11:00-12:15, Bolton B76 Professor: Scott Drewianka (e-mail: sdrewian@uwm.edu) Office Hours (in Bolton 860): Mondays and Wednesdays, 3:30-5:00 PM **If you would like to meet with me and cannot come during the regularly scheduled office hours, contact me to set up a special appointment. Goals of This Course: This course is part of a two-course graduate sequence on labor economics that may be taken in any order. It has two main goals: to introduce you to a range of topics in modern labor economics and (perhaps more importantly) to help you identify topics for your own future research. Prerequisites: Economics 701 (Economic Theory: Microeconomics). No previous experience with labor economics is necessary. Specifically, it is not necessary to take Economics 751 first. Main Textbook: Labor Economics, ed. by Orley Ashenfelter, (New York, Worth Publishers, 1999). Available at the UWM bookstore. Not required - it contains many of the readings we will discuss, but you can also obtain them elsewhere (e.g., JSTOR). See the course outline for other readings. Grading: Grades will be based on a midterm and final exam (20 percent each), a literature review or research paper (35 percent, including preliminary documents-see the next page for details), three article summaries (5 percent each), a presentation of your research at the end of the semester (5 percent), and class participation (5 percent). Exam Dates: Midterm: Final exam: October 20 Friday, December 17, 12:30-2:30 PM [Note: special time.] Some Policies: 1. Academic Honesty: For the protection of honest students, academic dishonesty-including all forms of cheating and plagiarism-will not be tolerated. Violators will be reported to university administrators for disciplinary action. See the university’s web page on academic misconduct for information about unacceptable behaviors and their consequences: www.uwm.edu/Dept/Acad_Aff/policy/academicmisconduct.html. 2. Plagiarism: DO NOT COMMIT PLAGIARISM!!! It’s a serious violation of academic standards and will be treated accordingly. Be sure you know what plagiarism is. For a definition, see http://www.uwm.edu/~rchay/eng095/info.html - PLAGIARISM. 3. Clarity: No credit will be granted for work that is unintelligible. This includes, but not exclusively, work that is illegible, incoherently organized, or poorly worded. 4. Other Departmental Policies: Information on the Department of Economics’ official policies on participation by students with disabilities, accommodation for religious observances, academic conduct, complaint procedures, grade appeal procedures, sexual harassment, incompletes, and other standing policies is available in the Economics Department office, Bolton 868 or at http://www.uwm.edu/Dept/SecU/SyllabusLinks.pdf. Students with needs of any sort should contact me after class, by phone, by e-mail, or in my office during the first two weeks of class. Article Summaries: During the course of the semester, you are to write three summaries of articles not discussed in class. The first article to be summarized will be assigned to you, and it will be accompanied by special instructions. For that summary only, the main objective will be to understand the structure of the discussion, with a special focus on the introduction. The last two summaries will be content-oriented. Each should be roughly 3-5 pages in length and should (a) identify the problem in question, its significance, and its place in the broader literature; (b) summarize the methods and findings of the paper; and (c) appraise the work, highlight any remaining questions, and/or recommend additional work that might be done on the question. If you wish, you may write summaries of articles that you discuss in your literature review (see below). Summaries must be submitted by the deadlines below, but will be accepted earlier as well. Deadlines: First summary: Sept. 27 Second summary: October 13 Third summary: November 1 Literature Review/Research Paper: A large portion of your grade will be determined by a research paper you write. While you will ultimately choose your own topic, you are strongly advised to consult with me before you decide in order to ensure that your topic has an appropriate scope. A typical paper will be about 2025 pages long (double spaced), but yours should be both as concise as possible and as long as necessary. That is, there is no prescribed maximum or minimum length apart from what is dictated by the breadth and complexity of the topic. Most students will be required to write a review of the existing literature on some topic in labor economics. To be clear, a literature review is NOT merely a series of article summaries or book reports, but rather a well-written, integrated discussion of the existing research in the field and possible directions in which the literature may expand in the future. Such a paper will identify the topic under discussion and its place in the broader economics literature, discuss its significance for public policy and/or other research, summarize the methods and contributions of several papers, describe how they relate to one another (e.g., compare and contrast their methods and results), highlight any conclusions that may be drawn from the literature, and point to any questions that remain open or new techniques or data that might shed additional light on the subject. For some excellent examples of such papers, look at virtually anything published in the Journal of Economic Perspectives or any of the articles in the Handbooks in Economics series. There is an alternative option for students who have already written a literature review for Labor Economics I (Econ 751). Such students may choose either to write another literature review or to write an original research paper on an open question they identified in their literature review from Econ 751. The latter option has two advantages: first, it will help you to develop a different set of skills, and second, it would be another step toward the completion of your MA thesis or Ph.D. dissertation. Eligible students wishing to write an original research paper should contact me early in the semester-and bring your literature review from Econ 751 and some ideas with you. I will help you identify a question you can answer during the semester. For most topics and most students, the original research you perform will be primarily empirical in nature, so you will want to obtain the necessary data as soon as possible. Deadlines: 1. Tentative decision about topic: September 29 2. Preliminary bibliography (at least 10 possible sources): October 4 3. Preliminary outline: November 10 4. Draft of introduction: November 22 5. Completed paper: December 13. Resources to help with your writing and/or research skills: 1. UWM Writing Center (www.uwm.edu/Dept/English/wcenter/ or www.writingcenter.uwm.edu): “Offers one-on-one assistance… to generate topics, conduct research, organize ideas, develop thesis statements and revise drafts. Undergrad and grad students are welcome,…at any stage of the project.” The Center is located in Curtin 127, and writing tutors are also available at a satellite location in northwest corner of first floor of the East Wing of the library, directly east of “The Grind” coffee shop. Phone: (414)229-4339. E-mail: writing@uwm.edu. 2. UWM Peer Mentoring Center (http://www.uwm.edu/letsci/edison/pmc/index.html): Offers assistance with writing, research, and a broad range of issues that confront students. Located in Bolton 192. Phone: 229-5385. E-mail: pmc@uwm.edu. 3. An excellent guide to writing well is Economical Writing, by Deirdre N. McCloskey (Prospect Heights, IL: Waveland Press, 2000). It is available at the UWM bookstore. 4. I also recommend John Cochrane’s writing tips: John H. Cochrane, “Writing Tips for Ph.D. Students,” working paper, University of Chicago Graduate School of Business, 2005. Available at http://faculty.chicagobooth.edu/john.cochrane/research/Papers/phd_paper_writing.pdf . 5. For excellent advice on establishing oneself as a professional economist, see A Guide for the Young Economist, by William Thomson (Cambridge, MA: MIT Press, 2001). Also available at the bookstore. Some very useful research resources: 1. JSTOR (www.jstor.org) – full-text research papers from leading journals in economics 2. Electronic databases from the UWM library (http://www.uwm.edu/Library/ris/databases/): a. EconLit – lists contents and abstracts of hundreds of economics journals since about 1969, as well as books, dissertations, and catalogued working papers b. Web of Science – allows you to search for articles that have cited a particular article in the past; useful for identifying subsequent contributions to the literature. 3. National Bureau of Economic Research working papers (www.nber.org) -- full-text working papers by leading scholars; often the most up-to-date research on a topic. 4. Handbook of Labor Economics, Volumes 1-3C (library call number: HD4802 .H36)– published by Elsevier, these handbooks contain extensive literature reviews on many topics in Labor Economics, written by some of the main contributors to those subfields 5. Collections of web-links to vast amounts of information and/or major data sets a. Resources for Economists on the Internet (http://rfe.wustl.edu/) b. The Labour Economics Gateway (http://labour.ceps.lu/) c. UWM’s links for Economics (www.uwm.edu/Library/ris/subjects/busecon.html) Reading list, by topic Notes: 1. This reading list is not intended to be a comprehensive bibliography, but rather a starting point for additional research. It includes a combination of seminal articles that inspired future research, interesting applications, literature reviews, and recent work. Many of the articles listed below will be discussed in class (especially those marked with an asterisk (*)), with varying emphasis. 2. Many readings appear in Labor Economics, ed. by Orley Ashenfelter (New York: Worth, 1999). It is available at the UWM bookstore, but is not required. Most papers can be downloaded from the library’s electronic reserve (https://millib.wisconsin.edu/vwebv/enterCourseReserve.do) or from JSTOR: www.jstor.org (free from a campus computer). 3. For a more advanced textbook on labor economics, see Pierre Cahuc and Andre Zylberberg, Labor Economics (Cambridge, Massachusetts: MIT Press, 2004). It is available at the bookstore. 4. An excellent overview of many topics we will cover: Rosen, Sherwin. 2002. “Markets and Diversity.” American Economic Review 92(1): 1-15. (Presidential Address to the AEA.) 5. The following Handbooks from Elsevier are also recommended as a general source for outstanding in-depth literature reviews of topics covered in this course: a. Handbook of Labor Economics, Vol. 1-2, ed. by Orley C. Ashenfelter and Richard Layard (New York: Elsevier, 1986). b. Handbook of Labor Economics, Vol. 3A-3C, ed. by Orley C. Ashenfelter and David Card (New York: Elsevier, 1999). c. Handbook of Population and Family Economics, Vol. 1A-1B, ed. by Mark R. Rosenzweig and Oded Stark (New York: Elsevier, 1997). I. Selection Models: An Introduction 1. * Heckman, James. 1974. “Shadow Prices, Market Wages, and Labor Supply.” Econometrica, 67994. 2. * Borjas, George J. 1987. “Self-Section and the Earnings of Immigrants.” American Economic Review 77(4), 531-553. 3. * Willis, Robert J. and Sherwin Rosen. 1979. “Education and Self-Selection.” Journal of Political Economy 87(5, part 2), S7-S36. 4. * LaLonde, Robert J. 1986. “Evaluating the Econometric Evaluations of Training Programs with Experimental Data.” American Economic Review 76(4), 604-620. 5. Heckman, James J. 1979. “Sample Selection Bias as Specification Error.” Econometrica 47(1), 153162. 6. Cunha, Flavio, James Heckman, and Salvador Navarro. 2005. “Separating Uncertainty from Heterogeneity in Lifetime Earnings.” Oxford Economic Papers 57(2), 191-261. 7. Roy, Andrew D. 1951. “Some Thoughts on the Distribution of Earnings.” Oxford Economic Papers 3, 135-46. 8. Heckman, James J. 2001. “Micro Data, Heterogeneity, and the Evaluation of Public Policy: Nobel Lecture.” Journal of Political Economy 109(4), 673-748. 9. Berndt, Ernst. 1991. “Whether and How Much Women Work for Pay: Applications of Limited Dependent Variable Procedures.” In The Practice of Econometrics (Reading, MA: AddisonWesley), Ch. 11. 10. Heckman, James J., and V. Joseph Hotz. 1989. “Choosing Among Alternate Nonexperimental Methods for Estimating the Impact of Social Programs: The Case of Manpower Training.” Journal of the American Statistical Association 84(408), 862-874. II. The (Widening) Distribution of Earnings and Wage Variability A. Income Inequality: Trends 1. * Juhn, Chinhui, Kevin M. Murphy, and Brooks Pierce. 1993. ``Wage Inequality and the Rise in Returns to Skill.'' Journal of Political Economy 101(3), 410-442. 2. * Solon, Gary. 1992. “Intergenerational Income Mobility in the United States.” American Economic Review 82(3), 393-408. 3. Sala-i-Martin, Xavier. 2006. “The World Distribution of Income: Falling Poverty and … Convergence, Period.” Quarterly Journal of Economics 121(2): 351-398. 4. Becker, Gary S., Tomas J. Philipson, and Rodrigo R. Soares. 2005. “The Quantity and Quality of Life and the Evolution of World Inequality.” American Economic Review 95(1), 277-291. 5. Fogel, Robert William. 2000. “The Egalitarian Revolution of the Twentieth Century.” Ch. 4 of The Fourth Great Awakening and the Future of Egalitarianism (Chicago: U. of Chicago Press). B. Income Instability 1. Gottschalk, Peter, and Robert Moffitt. 1994. ``The Growth of Earnings Instability in the U.S. Labor Market.'' Brookings Papers on Economic Activity (No. 2), 217-272. 2. * Haider, Steven J. 2001. “Earnings Instability and Earnings Inequality of Males in the United States: 1967-1991.” Journal of Labor Economics 19(4), 799-836. 3. Krueger, Dirk, and Fabrizio Perri. 2006. “Does Income Inequality Lead to Consumption Inequality? Evidence and Theory.” Review of Economic Studies 73(1), 163-193. 4. Gottschalk, Peter, and Robert Moffitt. 2009. “The Rising Instability of U.S. Earnings.” Journal of Economic Perspectives 23(4), 3-24. 5. Carroll, Christopher D., and Andrew A. Samwick. 1997. "The Nature of Precautionary Wealth." Journal of Monetary Economics 40(1), 41-71. 6. Blundell, Richard, and Ian Preston. 1998. “Consumption Inequality and Income Uncertainty.” Quarterly Journal of Economics 113(2), 603-640. 7. Baker, Michael, and Gary Solon. 2003. “Earnings Dynamics and Inequality among Canadian Men, 1976-1992: Evidence from Longitudinal Income Tax Records.” Journal of Labor Economics 21(2), 289-322. 8. Saks, Raven E. and Stephen H. Shore. 2005. “Risk and Career Choice.” Advances in Economic Analysis & Policy 5(1), Article 7. C. Theories and Evidence 1. * Bound, John, and George Johnson. 1992. “Changes in the Structure of Wages in the 1980’s” An Evaluation of Alternative Explanations.” American Economic Review 82(3) 371-92. 2. * Card, David, and John E. DiNardo. 2002. “Skill-biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles.” Journal of Labor Economics 20(4), 733-783. 3. Rosen, Sherwin. 1981. “The Economics of Superstars.” American Economic Review 71(5), 845-858. 4. *Autor, David H., Lawrence F. Katz, and Melissa S. Kearney. 2008. “Trends in US Wage Inequality: Revising the Revisionists.” Review of Economics and Statistics, 90(2), 300-323. 5. Lee, David S. 1999. “Wage Inequality in the United States During the 1980s: Rising Dispersion or Falling Minimum Wage?” Quarterly Journal of Economics 114(3), 977-1023. 6. Acemoglu, Daron. 2003. “Patterns of Skill Premia.” Review of Economic Studies 70(2), 199-230. 7. Katz, Lawrence F., and Kevin M. Murphy. 1992. “Changes in Relative Wages, 1963-1987: Supply and Demand Factors.” Quarterly Journal of Economics 107(1), 35-78. 8. Gould, Eric D. 2002. “Rising Wage Inequality, Comparative Advantage, and the Growing Importance of General Skills in the United States.” Journal of Labor Economics 20(1), 105-147. 9. Levy, Frank, and Richard Murnane. 1992. “U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations.” Journal of Economic Literature 30, 1333-81. 10. Acemoglu, Daron. 2002. “Technical Change, Inequality, and the Labor Market.” Journal of Economic Literature 40(1), 7-72. 11. Jovanovic, Boyan. 2004. “The Product Cycle and Inequality.” NBER Working Paper Series, No. 10910. 12. DiNardo, John, Nicole M. Fortin, and Thomas Lemieux. 1996. “Labor Market Institutions and the Distribution of Wages, 1973-92: A Semiparametric Approach.” Econometrica 64, 1001-44. 13. Lemieux, Thomas. 2008. “The Changing Nature of Wage Inequality.” Journal of Population Economics 21, 21-48. 14. Blau, Francine D., and Lawrence M. Kahn. 1996. “International Differences in Male Wage Inequality: Institutions versus Market Forces.” Journal of Political Economy 104(4), 791-837. 15. Allen, Steven G. 2001. “Technology and the Wage Structure.” Journal of Labor Economics 19(2), 440-483. 16. Lam, David. 1997. “Demographic Variables and Income Inequality.” In Handbook of Population and Family Economics, Mark R. Rosenzweig and Oded Stark, eds. (New York: Elsevier), Ch. 18. 17. Autor, David H., Frank Levy, and Richard J. Murnane. 2001. “The Skill Content of Recent Technological Change: An Empirical Exploration.” NBER Working Paper Series, No. w8337. 18. MacDonald, Glenn. 1988. “The Economics of Rising Stars.” American Economic Review 78(1), 155-166. III. The Structure of Work within Firms A. The Division of Labor and Specialization 1. Smith, Adam. 1776. The Wealth of Nations. Book I, Chapters 1-3. 2. Becker, Gary S., and Kevin M. Murphy. 1992. “The Division of Labor, Coordination Costs, and Knowledge.” Quarterly Journal of Economics 107, 1137-1160. 3. Grossman, Gene M., and Carl Shapiro. 1982. “A Theory of Factor Mobility.” Journal of Political Economy 90(5), 1054-1069. 4. Murphy, Kevin M. 1986. Specialization and Human Capital. Ph.D. Dissertation, U. of Chicago. B. Hierarchies and Teams 1. * Kremer, Michael. 1993. “The O-Ring Theory of Economic Development” Quarterly Journal of Economics 108(4), 551-575. 2. Rosen, Sherwin. 1981. “Authority, Control, and the Distribution of Earnings.” Bell Journal of Economics 13(2), 311-23. 3. Holmstrom, Bengt. 1982. “Moral Hazard in Teams.” Bell Journal of Economics 13, 324-340. 4. Sah, Raaj K., and Joseph E. Stiglitz. 1986. “The Architecture of Economic Systems: Hierarchies and Polyarchies.” American Economic Review 76(4), 716-727. 5. Garicano, Luis. 2000. “Hierarchies and the Organization of Knowledge in Production.” Journal of Political Economy 108(5), 874-904. IV. Careers: Unemployment, Job Search, Experience, and Turnover A. Job-Specific Human Capital and Other Match-Specific Rents 1. * Topel, Robert. 1991. “Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority.” Journal of Political Economy 99(1), 145-76. 2. *Lazear, Edward P. 2009. “Firm-Specific Human Capital: A Skill-Weights Approach.” Journal of Political Economy 117(5), 914-940. 3. Oi, Walter Y. 1962. “Labor as a Quasi-Fixed Factor.” Journal of Political Economy 70(6), 538-55. 4. Becker, Gary S. 1962. “Investment in Human Capital: A Theoretical Analysis.” Journal of Political Economy 70 (5, part 2), 9-49. 5. Heckman, James, and Jose Scheinkman. 1987. “The Importance of Bundling in a Gorman-Lancaster Model of Earnings.” Review of Economic Studies 54(2), 243-55. 6. Hall, Robert E. 1982. “The Importance of Lifetime Jobs in the U.S. Economy.” American Economic Review 72(4), 716-724. 7. Abraham, Katherine G. and Henry S. Farber. 1987. “Job Duration, Seniority, and Earnings.” American Economic Review 77(3), 278-97. 8. Altonji, Joseph G., and Nicolas Williams. 2005. “Do Wages Rise with Job Seniority? A Reassessment.” Industrial and Labor Relations Review 58(3), 370-397. 9. Becker, Gary S. 1975. “Investment in Human Capital: Effects on Earnings.” Chapter II of Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. Second Edition (Chicago: The University of Chicago Press), 15-44. 10. Beaudry, Paul, and John DiNardo. 1991. “The Effect of Implicit Contracts on the Movement of Wages over the Business Cycle: Evidence from Micro Data.” Journal of Political Economy 99(4), 665-688. 11. Jacobson, Louis S., Robert J. LaLonde, and Daniel G. Sullivan. 1993. “Earnings Losses of Displaced Workers.” American Economic Review 83(4), 685-709. 12. Couch, Kenneth A., and Dana W. Placzek. 2010. “Earnings Losses of Displaced Workers Revisited.” American Economic Review 100(1), 572-589. 13. Stevens, Margaret. 2003. “Earnings Functions, Specific Human Capital, and Job Matching: Tenure Bias is Negative.” Journal of Labor Economics 21(4), 783-805. 14. Abraham, Katherine G., and Susan K. Taylor. 1996. ``Firms' Use of Outside Contractors: Theory and Evidence.'' Journal of Labor Economics 14(3), 394-424. 15. Booth, Alison, and Monojit Chatterji. 1989. ``Redundancy Payments and Firm-Specific Training.'' Economica 56, 505-521. B. Turnover 1. * Sargent, Thomas J. 1987. “Search.” Chapter 2 of Dynamic Macroeconomic Theory (Cambridge, Mass.: Harvard University Press), 57-91. 2. * Jovanovic, Boyan. 1979(a). “Job Matching and the Theory of Turnover.” Journal of Political Economy 87(5, part 1), 972-90. 3. * Jovanovic, Boyan. 1979(b). ``Firm-specific Capital and Turnover.'' Journal of Political Economy 87(6), 1246-1260. 4. * Diamond, Peter A. 1981. ``Mobility Costs, Frictional Unemployment, and Efficiency.'' Journal of Political Economy 89(4), 798-812. 5. * Topel, Robert H., and Michael P. Ward. 1992. “Job Mobility and the Careers of Young Men.” Quarterly Journal of Economics 107(2), 439-479. 6. Mortensen, Dale T. 1978. ``Specific Capital and Labor Turnover.'' Bell Journal of Economics 9(2), 572-586. 7. Shimer, Robert. 2005. “The Cyclical Behavior of Equilibrium Unemployment and Vacancies: Evidence and Theory.” American Economic Review 95(1), 25-49. 8. Hall, Robert E. 2003. “Wage Determination and Employment Fluctuations.” NBER Working Paper Series, number 9967. 9. Schmieder, Johannes F., and Till von Wachter. 2010. “Does Wage Persistence Matter for Employment Fluctuations? Evidence from Displaced Workers.” American Economic Journal: Applied Economics 2(3), 1-21. 10. Mortensen, Dale T. 1982. ``Property Rights and Efficiency in Mating, Racing, and Related Games.'' American Economic Review 72(5), 968-979. 11. Mortensen, Dale T. 1988. “"Matching: Finding a Partner for Life or Otherwise," American Journal of Sociology, 44, S215-S240. 12. Flinn, Christopher J. 1986. “Wages and Job Mobility of Young Workers.” Journal of Political Economy 94(3, part2), S88-S110. 13. Lagos, Ricardo. 2000. “An Alternative Approach to Search Frictions.” Journal of Political Economy 108(5), 851-873. 14. Burdett, Kenneth, Shouyong Shi, and Randall Wright. 2001. “Pricing and Matching with Frictions.” Journal of Political Economy 109(5), 1060-85. 15. Wheeler, Christopher. 2001. “Search, Sorting, and Urban Agglomeration.” Journal of Labor Economics 19(4), 879-99. V. Economics and Demography A. Children, Fertility, and Human Capital 1. Hotz, V. Joseph, Jacob Alex Klerman, and Robert J. Willis. 1997. “The Economics of Fertility in Developed Countries.” Chapter 7 of Handbook of Population and Family Economics, ed. by Mark Rosenzweig and Oded Stark (Amsterdam: Elsevier Science). 2. * Becker, Gary S., Kevin M. Murphy, and Robert Tamura. 1990. “Human Capital, Fertility, and Economic Growth.” Journal of Political Economy 98 (5, part 2), S12-S37. 3. Willis, Robert J. “Economic Theory of Fertility Behavior.” In Economics of the Family, ed. by Theodore W. Schultz (Chicago: University of Chicago Press), 25-75. 4. Becker, Gary S., and H. Gregg Lewis. 1974. “Interaction between Quantity and Quality of Children.” In Economics of the Family, ed. by Theodore W. Schultz (Chicago: University of Chicago Press), 81-90. 5. Easterlin, R.A. 1978. “What Will 1984 Be Like? Socioeconomic Implications of Recent Twists in Age Structure.” Demography 15(4), 397-432. 6. Bailey, Martha J. 2010. “`Momma’s Got the Pill’: How Anthony Comstock and Griswold v. Connecticut Shaped US Childbearing.” American Economic Review 100(1), 98-129. 7. Macunovich, Diane J. 1998. “Fertility and the Easterlin Hypothesis: An Assessment of the Literature.” Journal of Population Economics 11, 53-111. 8. Lerman, Robert I. 1996. “The Impact of Changing U.S. Family Structure on Child Poverty and Income Inequality.” Economica 63, S119-S139. 9. Dahl, Gordon, and Enrico Moretti. 2004. “The Demand for Sons: Evidence from Divorce, Fertility, and Shotgun Marriages.” NBER Working Paper Series, number 10281. B. Migration and Immigration 1. * Borjas, George J. 1987. “Self-Section and the Earnings of Immigrants.” American Economic Review 77(4), 531-553. 2. * Card, David. 1990. “The Impact of the Mariel Boatlift on the Miami Labor Market.” Industrial and Labor Relations Review, 245-257. 3. Sjaastad, Larry A. 1962. “The Costs and Returns of Human Migration.” Journal of Political Economy 70 (5, supp.), 80-93. 4. Chiswick, Barry R. 1978. “The Effect of Americanization on the Earnings of Foreign-Born Men.” Journal of Political Economy 86(5), 897-921. 5. Borjas, George J. 1985. “Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants.” Journal of Labor Economics 3(4): 463-489. 6. Mincer, Jacob. 1978. “Family Migration Decisions.” Journal of Political Economy 86, 749-773. 7. Card, David. 2001. “Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration.” Journal of Labor Economics 19(1), 22-64. 8. Cortes, Kalena E. 2004. “Are Refugees Different from Economic Migrants? Some Empirical Evidence on the Heterogeneity of Immigrant Groups in the United States.” Review of Economics and Statistics 86(2), 465-480. 9. LaLonde, Robert J., and Robert H. Topel. 1991. “Immigrants in the American Labor Market: Quality, Assimilation, and Distributional Effects.” American Economic Review 81(2), 297-302. 10. Glaeser, Edward L., and David Maré. 2001. “Cities and Skills.” Journal of Labor Economics 19(2), 316-342. C. Family Structure: Marriage and Divorce 1. Becker, Gary S. 1991. A Treatise on the Family, Extended Ed. (Cambridge: Harvard U. Press). 2. * Becker, Gary S. 1974. “A Theory of Marriage,” In Economics of the Family: Marriage, Children, and Human Capital, edited by Theodore W. Schultz (Chicago: U. of Chicago Press). 3. * Becker, Gary S., Elisabeth M. Landes, and Robert T. Michael. 1977. “An Economic Analysis of Marital Instability.” Journal of Political Economy 85(6), 1141-1187. 4. * Friedberg, Leora. 1998. “Did Unilateral Divorce Raise Divorce Rates? Evidence from Panel Data,” American Economic Review 88(3), 608-627. 5. * Wolfers, Justin. 2006. “Did Unilateral Divorce Raise Divorce Rates? A Reconciliation and New Results,” American Economic Review 96(5), 1802-1820. 6. Weiss, Yoram. 1997. “The Formation and Dissolution of Families: Why Marry? Who Marries Whom? And What Happens upon Divorce.” Chapter 3 of Mark R. Rosenzweig and Oded Stark, eds., Handbook of Population and Family Economics (New York: Elsevier). 7. Lillard, Lee A., Michael J. Brien, and Linda J. Waite. 1995. “Premarital Cohabitation and Subsequent Marital Dissolution: A Matter of Self-Selection?” Demography 32(3), 437-457. 8. Weiss, Yoram, and Robert J. Willis. 1997. “Match Quality, New Information, and Marital Dissolution.” Journal of Labor Economics 15(1), S293-S329. 9. Drewianka, Scott D. 2003. “Theories of Family Structure: Implications from a Generalized Model of Commitment.” Working Paper, University of Wisconsin-Milwaukee. 10. Loughran, David S. 2002. "The Effect of Male Wage Inequality on Female Age at First Marriage." Review of Economics and Statistics 84(2), 237-250. 11. Gould, Eric D., and M. Daniele Paserman. 2003. “Waiting for Mr. Right: Rising Inequality and Declining Marriage Rates.” Journal of Urban Economics 53(2), 257-281. 12. Drewianka, Scott D. 2003. “Estimating Social Effects in Matching Markets: Externalities in Spousal Search,” Review of Economics and Statistics 85(2), 409-423. 13. Drewianka, Scott. 2008. “Divorce Law and Family Formation.” Journal of Population Economics 21(2), 485-503. 14. Willis, Robert J. 1987. “What Have We Learned from the Economics of the Family?” American Economic Review 77(2), 68-81. 15. Ellwood, David T. and Jonathan Crane. 1990. “Family Change Among Black Americans: What Do We Know?” Journal of Economic Perspectives 4(4), 65-84. 16. Charles, Kerwin Kofi, and Melvin Stephens, Jr. 2004. “Job Displacement, Disability, and Divorce.” Journal of Labor Economics 22(2), 489-522. 17. Charles, Kerwin Kofi, and Ming Ching Luoh. 2010. “Male Incarceration, the Marriage Market, and Female Outcomes.” Review of Economics and Statistics 92(3), 614-627. D. Families and Labor Supply 1. * Becker, Gary S. 1965. ``A Theory of the Allocation of Time.'' Economic Journal 75, 493-517. 2. * Juhn, Chinhui, and Kevin M. Murphy. 1997. “Wage Inequality and Family Labor Supply.” Journal of Labor Economics 15(1): 72-97. 3. Costa, Dora L., and Matthew E. Kahn. 2000. “Power Couples: Changes in the Locational Choice of the College Educated, 1940-90.” Quarterly Journal of Economics 115(4), 1287-1315. 4. Compton, Janice, and Robert A. Pollak. 2007. “Why Are Power Couples Increasingly Concentrated in Large Metropolitan Areas?” Journal of Labor Economics 25(3), 475-512. 5. Goldin, Claudia, and Lawrence F. Katz. 2002. “The Power of the Pill: Oral Contraceptives and Women’s Career and Marriage Decisions.” Journal of Political Economy 110(4), 730-770. 6. Bailey, Martha J. 2006. “More Power to the Pill: The Impact of Contraceptive Freedom on Women’s Life Cycle Labor Supply.” Quarterly Journal of Economics 121(1), 289-320. 7. Greenwood, Jeremy, Ananth Seshadri, and Mehmet Yorokoglu. 2005. “Engines of Liberation.” Review of Economic Studies 72(1), 109-134. 8. Jones, Larry E., Rodolfo E. Manuelli, and Ellen R. McGrattan. 2003. “Why Are Married Women Working So Much?” Federal Reserve Bank of Minneapolis Research Dept. Staff Report 317. 9. Hyslop, Dean R. 2001. “Rising U.S. Earnings Inequality and Family Labor Supply: The Covariance Structure of Intrafamily Earnings.” American Economic Review 91(4), 755-777. 10. 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