When working with labor economics, we often run into issues with selection on variables of interest. Regressing earnings on years of education to estimate the human capital earnings function makes sense at first blush until we imagine that education is … Continue reading → [Read more...]

Two posts ago I mentioned the age-earnings profile but did not provide a regression of log earnings on wage. I also offered, without evidence, that fitting a simple linear regression would be inappropriate. How do I know that? How could … Continue reading → [Read more...]

I like Labor Economics. Partially because it has a nice mix of theory and practical empiricism, but mostly because it seems to be a sub-field with a number of agreed upon stylized facts that grow not out of micro theory … Continue reading → [Read more...]