This research was funded under contract USDL-9-M-2-O].21 by the U.S. Department of Labor, which does not necessarily subscribe to the opinions as conclusions expressed in the paper. The estimation technique used in the paper and the empirical analysis were presented in preliminary form in an unpublished paper entitled °Wages, Productivity and Turrmover (November 1983). We are grateful to Michael Klein, Daniel Friedlander and especially Christina Paxson for outstanding research assistance, and to Kevin O'Neil for excellent clerical support. We also thank
The extent to which wages rise with the accumulation of seniority (tenure) in a firm after one controls for total labor market experience is a fundamental question about the structure of earnings. A variety of studies have found a large, positive partial effect of tenure on wages. This paper re-examines the evidence using a simple instrumental variables scheme to deal with well known estimation biases which arise from the fact that tenure is likely to be related to unobserved individual and job characteristics affecting the wage. We use the variation of tenure over a given job match as the principal instrumental variable for tenure. The variation in tenure over the job, in contrast to variation in tenure across individuals and jobs, is uncorrelated by construction with the fixed individual specific and job match specific components of the error term of the wage equation. Our main finding is that the partial effect of tenure on wages is small, and that general labor market experience and job shopping in the labor market account for most wage growth over a career. The strong cross section relationship between tenure and wages is due primarily to heterogeneity bias.
NBER WorlçLng paper 454 ebruary, 1980 This paper is an empirical exploration of the dynamic relationship between health and cognitive development in a longitudinal data set compiled from two nationally representative cross-sections of children. Our results indicate that there is feedback both from health to cognitive development and from cognitive development to health, but the latter of these relationships is stronger.They also indicate that estimates of family background effects taken from the dynamiá model -which can be assumed to be less jufluenced by genetic factors are smaller than their cross-sectional counterparts, but some still remain statistically significant.The first finding calls attention to the existence of a continuing interaction between health and cognitive development over the life cycle. The second finding suggests that nurture timattersit in cognitive development and health outcomes.
This paper is an empirical investigation of childhood and adolescent health and cognitive development as determined by family economic variables.The model proposed recognizes that these processes may be jointly dependent, and may in part be determined by common unobserved factors; these factors may also be correleted with the observed family economic variables. A two-factor model is estimated using panel data, and the results indicate that when such factors are taken account of, family income is estimated to have no significant influence on health and cognitive development, but parents' education a strong positive influence.
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